July 1 (Reuters) – U.S. automaker General Motors Co (GM.N) posted a 40% increase in second-quarter U.S. sales on Thursday due to strong demand for its sport utility vehicles (SUVs) , and said the trend will continue in 2022.
Low interest rates, government stimulus measures and a preference for private vehicles due to the COVID-19 pandemic have supported auto demand in the United States, even as prices have risen due to inventory tight following a global semiconductor shortage.
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GM said its Chevrolet Bolt EV had record second quarter deliveries, with total Chevrolet deliveries up 31%, while sales of its premium Buick SUVs soared 86%.
“The US economy is accelerating, consumer spending is strong and jobs are plentiful,” GM chief economist Elaine Buckberg said in a statement.
“Consumer demand for vehicles is also strong, but limited by very tight stocks.”
Shares of the US automaker rose 0.6% to $ 59.49 in morning trading, as its US auto sales jumped to 688,236 vehicles in the quarter.
“I’m not worried because the demand is there and the economy is rebounding. Plus, it looks like the worst of the auto chip shortage will be in the second quarter, so things should get better from here,” he said. said Morningstar analyst David Whiston.
Report by Sanjana Shivdas in Bengaluru; Editing by Vinay Dwivedi and Shinjini Ganguli
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