Auto industry posts worst U.S. sales year in over decade: reports

A Cadillac Lyriq electric vehicle is on display at the 2022 North American International Auto Show (NAIAS) in Detroit, the United States, on Sept. 14, 2022. (Photo by Michael Strong/Xinhua)

U.S. vehicles continued to be in short supply as car makers mostly waited for scarce computer chips.

NEW YORK, Jan. 4 (Xinhua) -- With supply chain issues, high interest rates and low inventory in full swing, analysts are projecting an estimated total of around 13.7 million new vehicles sold in the United States last year, the lowest figure in over a decade.

While an 8-percent drop was recorded in 2022 compared to 2021, the projection for 2023 isn't much better: sales figures are expected to remain well below pre-pandemic levels, with around 17 million new cars expected to be sold, said The Wall Street Journal on Wednesday.

"The drop-off marks a reversal for a sector that started the year hoping historically low interest rates and an end to parts shortages would fuel a rebound in sales," said auto news portal Jalopnikin in its report of the negative development.

Instead, vehicles continued to be in short supply as car makers mostly waited for scarce computer chips, it said, noting that Russia's military action in Ukraine, a key supplier of auto parts, added to the supply-chain troubles.

Visitors look at a new energy hypercar during a media preview at the 2022 Los Angeles Auto Show in Los Angeles, the United States, Nov. 17, 2022. (Photo by Zeng Hui/Xinhua)

To make the scenario worse, a new survey from consulting firm Deloitte showed that U.S. consumers are being kept away from electric vehicles (EV) by ever-rising prices, despite their desire to buy.

Nearly seven out of 10 prospective EV buyers in the United States hope to pay less than 50,000 U.S. dollars for their next vehicle, a number that's hard to achieve with most of the EVs available on the market today, according to the survey.