After facing massive problems like the coronavirus and other supply chain problems since 2020, the industry has normalized itself. As the industries have stabilized themselves it is expected that sales of new vehicles will slightly go higher next year. According to the expectations of analysts, the sales of vehicles might increase by 1 percent to 4 percent. They expect auto sales to increase from roughly 15.6 million to 16.1 million by the upcoming year. The comparison of this expected growth is made with 2.8 percent year-over-year growth in sales of vehicles globally. This growth rate is forecasted by S and global mobility.
US Auto Industry Forecasts Surprising Rebound in Sales for 2023- Anticipating a Turnaround in US Sales after a Challenging Year
The automotive industry is all set to have a wonderful next year that will boost its sales after facing pandemics and decreased sales. In 2019 more than 17 million new vehicles which include cars and trucks were sold at the domestic level. So, domestic sales would be the highest that year but that could not happen. Right after these high auto sales were observed the industry sales started dwindling. The auto industry started struggling due to the arrival of the coronavirus and has been struggling since then. The auto industry faced the lowest sales due to problems in production and supply chain. 2022 was a year of great loss for them as they managed to sell less than 14 million vehicles. This number was the lowest number observed after more than a decade.
So, after facing such a crisis even a small increase in US sales could make consumers and companies somewhat happier. The slightest increase would mean the production of vehicles and possibly alleviating concerns of affordability in between inflation. It would also lead to record high new prices and high interest rates for vehicles. The upcoming year brought expectations of even more growth in sales and some exciting deals. And that was all that consumers had been eagerly waiting to see in a year ahead.
According to Jessica Caldwell Edmunds:
2023s high interest rate would stay ahead of intuition and would also serve to evoke conflicting dynamics. All this would only be possible by growth in the automotive industry in the United States.
Pricing power gives way to encouragement:
As the driven incentives are back into the market due to growth in sales it has also led to raising a belief in Edmunds. Now Edmunds believes that improved growth has also improved the power of new pricing for automakers. For these automakers and dealers who have enjoyed record profits in recent years, increased sales but lower prices might prove to be an obstacle.
The damage that was detected in the past few years is expected to be improved not only in 2023 but also in 2024. From 2015 to 2016 no such progress was observed in the industry. So if the coming year reboosts sales growth it would become the first succeeding sales growth after 2015 to 2016.
The list of predictions that have been made proves that S and Ps US sales are among the highest. Its calculation says that in 2023 the sales will increase 2 percent more in comparison with sales of 2023. The sales which were 15.5 in 2023 will reach 15.9 in 2024.
Another definition that is provided by global data says that new vehicle sales will increase by nearly 4 percent and will reach 16.1 million units. Edmunds has also expected more growth in 2024 as compared to 2023. According to Edmunds, in 2024 million new cars and trucks might be sold. So basically this growth would be 1 percent more than the growth rate in 2023 observed.
Lastly the words stated by Jonathan smoke who is an automotive chief economist says” It is always interesting to analyze those trends that are somewhat dwindling but able to make highlights. He enjoys it as an economist but he also knows such a trend would not be good for long-term businesses.
Youtuber, Auto enthusiast, and Content creator with 6+ years in the field of automobiles and bikes.