Coronavirus pandemic fuels comeback of cars

The common age of a car on U.S. roads rose with the aid of a month this 12 months to a report 11.9 years.

The IHS Markit consulting association says the pandemic has brought on customers to put the brakes on spending and preserve onto their contemporary cars for a longer period. As a result, fewer new cars are coming onto the roads, pushing up the common age.

IHS stated Tuesday that it expects the shift will create possibilities for restore retail outlets and components agents due to the fact older cars want extra service. It "anticipates extensive upward strain on common age in 2020 and subsequent years as buyers work towards a new everyday each economically and in how they use non-public automobiles in a post-COVID-19 era," stated Todd Campau, IHS companion director of aftermarket solutions.

Before the pandemic, U.S. new car income had been predicted to be a little underneath 17 million in 2020, quick of the document 17.55 million in 2016, however nevertheless at a wholesome level. Now most analysts are looking forward to income to be round 14 million for the full year.

The common automobile age has been inching towards 12 years for various years now, and the pandemic is possibly to increase it by using 4 to six months in the coming years, IHS said. A decade ago, the common age used to be 10.6 years.

IHS says that new car income have been trending down even earlier than the pandemic. New cars accounted for 6.1% of the cars in use ultimate year, in contrast with 6.7% in 2016. This year, IHS Markit expects the proportion to fall to 5% or less. "Declining new automobile share in the general populace skill fewer youthful cars to mood common age growth," the corporation stated in a statement.

There are about 280 million cars registered in the U.S., up 1% from 2019. 

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