Ten indicators that the auto industry will roar back in 2023
If the U.S. economy continues its slow — but sure recovery — auto sales are likely to continue to improve exponentially — Americans love and need their motor vehicles. We need them for work, business and pleasure. The American auto industry has been struggling to meet the needs of a nation emerging from Covid — as a result, the industry is growing at a compound annual growth rate of 7.22%. America depends on the 286.9 million registered vehicles that transport them across the roads, which is why the automotive industry is so incredibly profitable.
Although the automotive industry took a hit during the pandemic, current trends show that it’s bouncing back…here are 10 important indicators that, with some luck, the auto industry could roar into 2023. Here’s why we think it will.
- The total value of the US car and automobile manufacturing market will reach $100.9 billion in 2022. An increase over 2021.
- 9.2 million US vehicles were produced in 2021, up from 2020.
- The US produced 8.8 million vehicles in 2020, a 19% drop from 2019.
- 923,000 Americans work in motor vehicles and parts manufacturing, and 1,251,600 are employed by automobile dealers and the number will grow.
- The revenue of United States motor vehicle and parts dealers was $1.53 trillion as of 2021 as older cars and trucks are staying on the road longer.
- The auto industry accounts for 3% of America’s GDP.
- The US automobile industry sold an estimated 15 million cars and light truck vehicles in 2021.
- As a whole, Americans will spend $698 billion in 2022 on the combination of automobile loans and insurance.
- The bad news: U.S. vehicle production has fallen by 27.7% since 2016. Worst since the economic recession of 2008, which brought on some of the lowest rates of vehicle buying since the eighties. Since then, the number of cars sold in the United States auto industry has slowly risen by 60% between 2009 and 2018.
- As of November 2021, 923,700 people are working in motor vehicles and parts manufacturing jobs in the United States, up from 2021.
Threats to continued U.S. auto sales growthThe economic recession of 2008 brought about some of the lowest rates of vehicle buying since the eighties. Since then, the amount of cars sold in the United States auto industry has slowly risen by 60% between 2009 and 2018.
If the current market conditions of inflation, rising interest rates, and rising gas prices lead to a recession, there could be further impacts on the overall auto industry. While optimism remains, we’re simply running out of time in 2022 to revert to higher levels, so we’ll continue our reporting as 2022 draws to a close and we see the final numbers.
