Honda skids again; Hyundai, Kia end weak stretch with double-digit gains

U.S. auto sales slumped again at American Honda, while Hyundai and Kia deliveries rose by double-digits last month compared to August 2021, ending a stretch of five straight monthly declines at the Korean brands, as the industry’s chronic inventory shortages slowly ease.

Honda Motor Co. said August sales skidded 38 percent, with deliveries down 36 percent at the Honda division and 47 percent at Acura. Honda brand sales have now dropped 13 straight months, while Acura volumes have dropped 12 consecutive months.

Honda said its days supply of vehicles remains stuck in the single digits, while a west coast rail embargo contributed to supply woes during the month.

August volume rose 14 percent at Hyundai and 22 percent at Kia behind strong retail demand for crossovers, EVs and some cars.

“We’re seeing inventory begin to rebound which resulted in strong sales this month,” said Randy Parker, CEO of Hyundai Motor America. The company said it ended August with 19,209 cars and lights trucks in U.S. inventory, up from 14,784 at the close of July but off from 39,357 at the end of August 2021.

Kia, with the lowest days supply of vehicles, according to Cox Automotive data, said it set an August record with 66,089 deliveries, signalling the company’s lineup continues to churn at a high rate.

“We are optimistic that production through the end of the year will improve,” said Eric Watson, vice president of sales operations for Kia America.

Mazda volume declined for the fifth straight month, falling 6.7 percent to 25,426 cars and light trucks.

Genesis sales rose 2.6 percent to an August record of 5,102 on continued strong demand for crossovers.

Toyota Motor Corp. and Subaru will release August results later Thursday, followed by Ford Motor Co. and Volvo on Friday. The rest of the auto industry reports quarterly sales.

U.S. light-vehicle deliveries are forecast to rise 3.6 to 4.6 percent across the industry, forecasters say, helped by an extra selling day, and marking the first monthly gain, year over year, since summer 2021.

August 2021 was the first month when chronic inventory shortages had a significant impact on new-vehicle sales following the start of the pandemic. As a result, the year-over-year sales decline last month will be smaller than it has been in recent months, whereas August 2021 sales were more reflective of actual consumer demand, analysts say.