US Q2 car sales surge on strong SUV, EVs demand

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Carmakers posted record earnings from sales in US market in the second quarter as demand for SUVs and electric vehicles soared and manufacturers sold more units although they hiked the prices, Reuters reported. Robust sales were due to the post-Covid-19 economic recovery, coupled by low interest rates on credits. The consumer trend shows steady increase in demand for more expensive cars and a lot of carmakers are pushing forwards to introducing new models of electric vehicles.

Low interest rates, government stimulus and a preference for personal transportation due to the Covid-19 pandemic also fueled demand for cars, even as prices have risen due to tight inventories following a global semiconductor shortage. Higher prices have raised profitability for automakers, who have also boosted investments in EV production.

General Motors said its Chevrolet Bolt EV posted record second-quarter deliveries, with total Chevrolet sales up 31%, while sales of Buick premium SUVs soared by 86%. "We expect continued high demand in the second half of this year and into 2022," Elaine Buckberg, GM's chief economist, said. Last month GM increased its EV budget to $35 billion through 2025.

Toyota said alternative powered vehicles represented nearly a 25% of its sales volume through June this year, up from 13% a year earlier. Toyota's overall US sales rose about 73% to 688,813 vehicles in the second quarter.

Several new EVs will launch in the second half of 2021 including Chevrolet's Bolt EUV, Hyundai's Ioniq 5 and Kia's EV6 models, boosting strongly the overall share of EVs in the United States from just 2% of all registered vehicles currently.

Ford, which sold more than 10,000 units of its Mustang Mach-E SUV in the first five months of this year, will launch the electric version of its best-selling F-150 pickup in 2022.

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