(Reuters) – General Motors remained the top US auto seller during the third quarter despite a dip in sales, but Toyota Motor continued chipping away at its lead as high gasoline prices pushed buyers toward hybrids.
GM, Ford Motor and Stellantis — also called the Detroit Three — could see their combined market share dip to around 36% in the quarter, according to industry research firm Cox Automotive, while hybrid-heavy Asian brands including Toyota and Honda are expected to account for more than half of new vehicle sales in the period.
Hybrids have emerged as a top choice for consumers as the Iran war sends oil and fuel prices soaring, with regular gasoline prices hitting a national average of $4.43 a gallon in September, according to AAA, compared with $3.20 a year earlier.
Analysts expect Toyota Motor Corporation, with models such as the popular Corolla hybrid, to benefit the most from the shift.
While Toyota’s overall sales rose marginally to 633,223 units in the third quarter, sales of the Corolla hybrid jumped nearly 36% from a year earlier to 13,003 units.
Cox also expects Hyundai Motor Group to surpass Ford in quarterly US sales for the first time, forecasting third-quarter sales of 511,421 vehicles for Hyundai, compared with 504,172 for Ford. Ford is set to report quarterly sales on Friday.
AFFORDABILITY PRESSURES CONTINUE
While borrowing costs have declined, this has done little to ease affordability pressures as higher new vehicle prices and lower trade-in values push monthly payments higher, said research firm JD Power. The average transaction price for a new vehicle rose 1.9% to $50,089 in August from a year earlier, according to Cox.
GM’s affordable models, including the Trax crossover, helped the Detroit automaker cushion the impact, but overall sales during the third quarter dipped 5.5% to 670,974 units.
The company’s electric vehicle sales also fell 62% from a year earlier, when demand was boosted by consumers buying ahead of the expiration of the $7,500 federal tax credit in September 2025. EV sales have since fallen sharply across the industry.
Meanwhile, Honda, whose quarterly sales jumped 9% from last year, has stuck with offering lease deals while other automakers have moved away from the strategy.
Leasing “gives us a really good cadence of customers who are coming back to market,” said Lance Woelfer, the automaker’s vice president of automobile sales.
Stellantis’ third-quarter sales stayed roughly flat at 324,277 units from a year ago.
Cox estimates overall third-quarter US sales at about 4.1 million units, down about 1% from a year earlier.
Reporting by Nathan Gomes in Bengaluru; Editing by Jonathan Ananda
