Trends in the American Automotive Industry
As expected, the COVID-19 pandemic resulted in a sharp drop in demand. In March 2020, U.S. vehicle sales were down 38% compared with the previous year. The end of stay-at-home restrictions led to a bounce-back in light vehicle sales to 14.5 million units. Light vehicles accounted for 97% of motor vehicles sold in the U.S. in 2020.1
Autos (new and used) and auto parts stores account for 20% of total U.S. retail sales. In 2020, the automotive industry (vehicle manufacturing plus sales) contributed 3% ($627 billion) to the U.S. gross domestic product (GDP) ($20.93 trillion). In Q1 2021, 4.1 million people were employed in the auto industry.2
10.8 million cars and trucks were produced in the U.S. in 2019, and 13.7 million units were sold. Demand for electric vehicles (EVs) is increasing due to the desire for improved fuel efficiency and lower emissions. This market segment is expected to grow from $162 billion in 2019 to $802 billion by 2027. There are 1.6 million EVs on the road today; 18.7 million are projected by 2030.2
Automotive Marketing and Consulting Services
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1 Source: https://www.statista.com
2 Source: https://www.thebalance.com