The United States automotive industry is entering a state of battle as the three leading manufacturers – GM, Ford and Toyota – go head-to-head in the race for leadership. The past month has seen all three groups offer a huge range of incentives to woo American motorists, a push that has resulted in the highest level of car sales since the rebates of last August sparked a rush on vehicles sales.

The month of March saw Ford sell 183,425 cars and light trucks, but even this was behind Toyota (186,863) and GM (188,011) in the incredibly tight race for the leading automotive retailer. Each of the three manufacturers achieved 18 per cent of total market sales.

Total vehicle sales in March were around 12 million, which represents a significant increase from the same period in 2009 when just 9.8 million vehicles were sold. The lingering effects of the global economic downturn have still impacted on the industry, which sold over 16 million every year during the boom period of 1999 – 2007.

Toyota is still reeling from the safety scandal that severely tarnished its international reputation, but countered this with zero per cent loan offerings in the wake of huge falls in sales in January and February. The incentive was a phenomenal success, with sales rising by 41 per cent last month.

Ford, still hurting from not being part of the government bail-out package afforded to Chrysler and GM, has also offered interest-free loans that have led to soaring sales in the region of 40 per cent up from the previous month. GM improved by 22 per cent in March, still hindered by its bankruptcy hangover. It has, however, expressed a positive economic outlook.