United States - car growth outlook 2020-2023

Light vehicle sales in the United States could grow by 12.3 percent between 2022 and 2023. The U.S. auto industry is expected to sell about 15.5 million vehicles in a scenario that is based on data available through October 2023.

Auto demand is expected to rebound

U.S. light vehicle demand started to bounce back in 2021, but the automotive semiconductor shortage is expected to lead to production cuts and lower sales. In 2021, motorists in the U.S. bought some 15 million new automobiles and light trucks, up from around 14.5 million units in 2020. The industry experienced record sales between 2015 and 2018 when new light vehicle sales in the U.S. exceeded 17 million units.

Consumer confidence matters

Light vehicle demand picked up steam in the second half of 2020 after experiencing a sharp slump between March and May. The market defied predictions according to which new motor vehicle owners would not add new vehicles soon to the cars and light trucks already in their driveways. In 2022, the average price of a new light vehicle came to roughly 46,300 U.S. dollars. Consumers are typically less willing to make such a large investment when the economy slows down. In 2022, some 79.7 percent of new-vehicle buyers use financing schemes. In 2021, the average age of vehicles on U.S. roads was 12.1 years.