Global Automotive Sales Down 18.3 Percent, Worst In 17 Years

July 2, 2008 6:06 p.m. EST

Detroit, MI (AHN) - The automotive industry is in for hard times as American car maker General Motors reported a sales slump for June, while its Japanese counterpart Toyota reported a sharp 21 percent decline. Analysts said the overall market declined to 18.3 percent, the worst in 17 years.

Also hard hit were Nissan and Honda of Japan, Hyundai of Korea, and Chrysler of the United States. Autodata Corp. attributed the decrease in sales to soaring fuel prices, which hit record highs from March to June.

Analysts observed that automakers shifted their focus to producing hybrid cars or fuel-efficient models: smaller cars, which started roaming the streets recently. The declining car-buying market has started looking into fuel-efficient vehicles, however some automakers were not ready for the growing demand for hybrid units.

Nissan reported a drop in sales by nearly 18 percent, while sales at Ford, which specializes in trucks and sport utility vehicles, also dropped to 28 percent. Chrysler took a deep plunge at 36 percent.

In the U.S. market, however, Asian automakers Honda and Hyundai experienced increased in sales in June, outdoing American car firms General Motors, Ford and Chrysler.