General Motors saw a 40% increase in second-quarter sales in the United States due to strong demand for its sports utility vehicles (SUVs), a trend that the automaker says will continue into 2022.
Low interest rates and stimulus from the US government due to the pandemic have boosted demand for cars in the United States, even though prices have risen due to inventory shortages during the global crisis in the semiconductor market.
Consumers are buying more expensive vehicles despite fewer discounts, increasing profitability for automakers and retailers, according to industry consultancy JD Power and LMC Automotive.
GM said its Chevrolet Bolt EV posted record second-quarter deliveries, while sales of the Buick premium SUV 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 tight inventories."
GM shares rose 0.1% to $ 59.26 at noon, after its US car sales rose to 688,236 vehicles in the quarter.
