US Vehicle Demand Strong amid Fears of Economic Slowdown, Says Subaru

The demand for new electric vehicles in the United States remains strong despite increasing interest and loan rates, said Tomomi Nakamura, chief executive of Japan’s Subaru Corp. Tomomi Nakamura added that people in the United States are feeling a slowdown in the economy, but car sales are still strong as supply lags.

According to Tomomi Nakamura, US new sales in the upcoming financial years starting April 2023 are estimated to be between 14 million and 14.5 million. Growing inflation, increasing interest rates, and rising risks of recession major markets have made the demand outlook dark, however, automobile production still remains tight in general because of chip shortages and restrictions related to COVID-19.

Subura Corp. is forecasting an operating profit of 2.03 billion dollars in the business year ending March 2023, which is 50 percent higher than its past estimate because of a weak yen and higher prices to offset the impact of increasing commodity prices.

In the United States, the automobile company sold around 140,000 cars in its fiscal second quarter, and it is expecting the US sales to reach 631,000 for the current years. Still Tomomi Nakamura said that it would be tough to expand the US production because of a tight labour market.