In this article, we are going to discuss the 15 best-selling car brands in the U.S. You can skip our detailed analysis of the automotive industry in the U.S., the best-selling automaker in America, and the global semiconductor shortage affecting the car manufacturing industry, and go directly to 5 Best-Selling Car Brands in the U.S.
The automobile manufacturing sector is one of the largest industries worldwide. Often, a country’s automotive sector is a reflection of its broader economic condition. It affects every aspect of daily life and is an important source of employment – approximately 5% of the global labor force is directly or indirectly employed in the automobile sector. The total turnover of the global vehicle manufacturing industry is, in fact, greater than the GDP of France.
Automotive Industry in the U.S.:
The United States has one of the largest automotive markets in the world. The total light vehicle market sales in the U.S. totaled just over 13.7 million units in 2022, down 7.9% from the previous year’s sales of 14.9 million vehicles. Sales were hampered by supply constraints and higher interest rates – a response to an uptick in price inflation. Transaction prices hit record levels and inventory stayed low, despite some improvement in the second half of the year.
In 2023, light vehicle sales in America are still expected to remain well below pre-pandemic levels at 14.9 million units, an increase of 9% from last year. In pre-pandemic 2019, the U.S. market was 17 million units, a level it is not expected to return to until 2025.
As we mentioned in our article – 15 Most Profitable Car Companies in the World – around 4.5% of all U.S. jobs are supported by the country’s auto industry and people working in these jobs collectively earn over $500 billion annually in compensation and contribute over $70 billion in tax revenues. The American automotive industry contributed $2.3 trillion to the country’s economy in 2021, amounting to 12% of the total U.S. GDP.
Best-Selling Automaker in America:
Toyota Motor Corporation (NYSE:TM) made headlines in 2021 when it overtook General Motors Company (NYSE:GM) for the first time ever as the Top-Selling Car Company in the United States. The Japanese automaker, which for decades has worked to expand its presence in the U.S., sold a total of 2.3 million vehicles in the country’s market, against GM’s sales of 2.2 million. Prior to this, the General Motors Company (NYSE:GM) had been the top auto seller in the U.S. since 1931.
Toyota Motor Corporation (NYSE:TM) had largely benefited from its decision to stockpile computer chips, which are used in a vast array of vehicle electronics. It bet earlier than most other car manufacturers on a recovering U.S. car market and cut parts and production orders less sharply than rivals, making it better prepared for an eventual surge in consumer demand.
However, the status quo was restored in 2022 when the General Motors Company (NYSE:GM) regained its top spot, with its brands selling 2.27 million vehicles in the American market, against Toyota Motor Corporation (NYSE:TM)’s 2.1 million units. Three of GM’s four brands saw year-over-year sales increases in 2022, with Buick being the only brand to decline.
Stocks of the General Motors Company (NYSE:GM) were held by 72 out of 910 hedge funds in the Insider Monkey database at the end of Q2 2023. GM ranks among the 11 Best Consumer Cyclical Stocks to Buy Now.
Global Semiconductor Shortage:
A major problem that the automotive sector has recently been faced with is the global semiconductor chip shortage. In conventional automobiles, chips process information in various vehicle subsystems that improve the vehicle’s efficiency and make driving safer. According to a study by the United States International Trade Commission, conventional vehicles had approximately $330 worth of chips in 2019, with this number rising even further now. Additionally, the adoption of electric vehicles, with their more complicated systems, has raised the demand for semiconductor chips even higher.
The global semiconductor industry has struggled to keep up with this rising demand, mainly due to Covid-19 disruptions, trade action uncertainty, and accelerated digital transformation. A report by Techwire Asia has revealed that the shortage of semiconductors had caused vehicle manufacturing lead times to increase from an average 3 to 4 months, to an average of 10 to 12 months. Automakers around the world lost an estimated $210 billion in revenue in 2021 due to the chip shortage.
Although the semiconductor crisis is now largely resolved, the chip supply situation still carries a degree of uncertainty. Demand still exceeds supply of several chip types and there is still a shortage, even if the auto industry can better manage it today than two years ago.
With that said, here are the Top-Selling Car Brands in America.
Methodology:
To collect data for this article, we have referred to a number of sources, such as Best-Selling-Cars, Reuters, and above all – the car companies’ own respective websites, looking for the Most Popular Car Brands in the U.S.. The following brands have been ranked by their total number of units sold in the U.S. in 2022.
If you’re interested in reading about automobiles that have fetched the biggest price tags in history, here are the Top 20 Most Expensive Cars of All Time.
15. Volkswagen
Units sold in the U.S. in 2022: 301,069
Volkswagen had a dismal year in the U.S. with car and SUV sales down by 19.7% to only 301,069 vehicles – the company’s lowest sales volume in America in the last decade. VW blames the industry-wide supply chain disruptions to affect its ability to fully serve the high market demand.
Volkswagen is currently the largest automaker in the world, with a reported revenue of approximately $300 billion last year.
14. BMW
Units sold in the U.S. in 2022: 332,388
According to the automaker’s website, for the full year 2022, BMW brand sales in the U.S. market decreased slightly by 1.3% to 332,388, compared to the 336,644 vehicles sold in 2021.
Plant Spartanburg in South Carolina built just over 60% of the BMW vehicles sold in America last year, and continues to be a main driver of the company’s success. Despite lingering production challenges, the plant achieved its second-highest annual output in 2022, while also adding the all-new BMW XM to its model lineup.
BMW is the #1 best car brand in 2023, according to Consumer Reports.
13. Mercedes-Benz
Units sold in the U.S. in 2022: 350,949
Mercedes-Benz USA recorded sales of 286,764 passenger vehicles in calendar year 2022, a growth of 4% from 2021, and 64,185 Vans, an increase of 20% versus 2021. This brings MBUSA‘s total sales to 350,949 units last year, an overall increase of 6.5% from the previous year. According to Dimitris Psillakis, the President and CEO of MBUSA:
“Strong year-end results and exponential volume growth of our EV portfolio are a testament to the strong demand for Mercedes-Benz EQ, luxury and commercial vehicles in the U.S. market. With a full lineup of five EQ models and a renewed focus on Top-End Vehicles, we will continue to advance our strategy and offer the most desirable luxury cars, SUVs, and commercial vehicles.”
Mercedes-Benz is counted among the Top-Selling Car Brands in the World.
12. Tesla
Units sold in the U.S. in 2022: 354,822
Tesla, Inc. (NASDAQ:TSLA) is the best-selling electric vehicle manufacturer in the United States, with the automaker capturing over 50% of the U.S. EV market last year. In 2022, Tesla, Inc. (NASDAQ:TSLA) sold a total of 354,822 vehicles in America, up from 234,000 in 2021 – a growth of 53%. The Tesla Model Y was the best-selling electric vehicle in the U.S. in 2022, with sales of 195,447 units.
Tesla, Inc. (NASDAQ:TSLA) shares have risen by over 146% this year, bouncing back from a drop of 65% in 2018, driven by a rush for technology and growth stocks, with fears of recession easing. TSLA sits among the 12 Best Aggressive Growth Stocks to Buy According to Hedge Funds.
11. Ram
Units sold in the U.S. in 2022: 468,344
Ram, a name well-known in the U.S. for its brawny pickup trucks and commercial vans, has long concentrated its sales in North America. Ram delivered 468,344 trucks in 2022, representing a decrease of 16% compared to the previous year, when the company sold over 569,000 units.
In 2009, Dodge’s parent company, Chrysler, decided to make Ram a standalone brand. But both Dodge and Ram are owned by the Chrysler group, which is itself a subsidiary of Stellantis.
Ram ranks among America’s Top Car Brands.
10. GMC
Units sold in the U.S. in 2022: 517,469
GMC was the number one premium truck brand in the U.S. last year, with sales of 517,469 units, an increase of 7.3% from 2021. Sierra was the best-selling model of GMC in 2022, with 72,415 units sold, representing a YoY increase of 25.42%.
9. Subaru
Units sold in the U.S. in 2022: 556,581
With five consecutive months of sales increases, Subaru of America ended 2022 with 556,581 vehicle sales, a 4.7% decrease compared to 2021. These year-end results are reflective of the impact that the semiconductor shortage and supply chain disruptions continue to have on the automobile industry.
Subaru’s success stems from focusing heavily on its 4×4 Unique Selling Point and producing a handful of cars that consumers really want, such as the Outback, Forester, and XV Crosstrek. Crosstrek was the company’s top performer last year, with 155,142 units sold in America.
Subaru sits among the Top 10 Car Brands in America.
8. Kia
Units sold in the U.S. in 2022: 654,554
Kia continued its impressive sales growth in the U.S. last year with 654,554 units sold – an increase of 1.7% compared to the previous retail record in 2021. Sales of the Kia’s SUVs and utility vehicles represented 66.8% of the brand’s overall sales last year, led by Sportage, Telluride, and Sorento.
Kia Corporation reported a 13.5% increase in profits in 2022, which can be attributed to its efficient supply chain management strategies and the successful launches of the all new Niro and the 2024 Seltos.
7. Nissan
Units sold in the U.S. in 2022: 682,731
Nissan Group’s U.S. market fortunes showed signs of recovery in 2021, but they have turned out to be short-lived. The brand had a rough year in 2022, when Nissan sold only 682,731 vehicles, a massive decline of 26% from 2021, as the industry grappled with tight inventories and faced a new threat of softening demand in a slowing economy.
Rogue was Nissan’s best-seller in the U.S. last year, when the company sold 186,480 of them, down 34.7% from 2021. Nissan ranks 7th in our list of Top Car Brands in the U.S.
6. Jeep
Units sold in the U.S. in 2022: 684,613
Jeep is Chrysler group’s best-selling car brand in America, with sales of 684,613 vehicles last year. The brand witnessed a 10.94% drop in sales compared to 2021, however, there have been some recent highlights for Jeep. In 2022, the Jeep Wrangler 4xe, a plug-in hybrid version of the Wrangler SUV, was the best-selling plug-in hybrid vehicle in the US.
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Disclosure: None. 15 Best-Selling Car Brands in the U.S. is originally published on Insider Monkey.