The typical age of passenger vehicles and light-weight trucks in america has risen to a brand new document of 12.5 years. In response to a research offered by S&P World Mobility, there are greater than 284 million autos being pushed on U.S. roads, and that document common age is up by three months in comparison with 2022. That is the sixth straight yr that the common age has risen, and the continuation of the development wasn’t surprising.
“We anticipated the confluence of things impacting the fleet popping out of 2021 would offer additional upward stress on common car age,” mentioned Todd Campau, affiliate director of aftermarket options for S&P World Mobility. The explanations for the growing old car fleet are well-known by this level. The Covid pandemic initially impacted new vehicle gross sales, then shortages had been attributable to a scarcity of microprocessor chips for the automotive business. “However the stress was amplified within the again half of 2022 as rates of interest and inflation started to take their toll,” Campau added.
The mixed impact of those components brought about retail and fleet gross sales of latest gentle autos in america to drop 8% from 2021’s 14.6 million models to 13.9 million models in 2022. S&P World Mobility says that is the lowest degree recorded in over a decade. “There are virtually 122 million autos in operation over 12 years outdated,” mentioned Campau.
However indicators recommend there could also be a small turnaround after this yr, with 14.5 million autos anticipated to be offered. “Whereas stress will stay on common age in 2023, we anticipate the curve to start to flatten this yr as we glance towards returning to historic norms for brand spanking new car gross sales in 2024,” mentioned Campau.
Additionally unsurprising is knowledge exhibiting a dramatic lower within the variety of passenger vehicles — particularly sedans, coupes, wagons and hatchbacks — as gentle vans and sport utility vehicles make up the majority of latest car gross sales. Final yr, 78% of all new autos offered had been gentle vans or utility autos, and presently 63% of all autos on American roadways are vans or utility autos. By 2028, gentle vans and utility autos are projected to make up round 80% of the overall car fleet on U.S. roads.
All of this knowledge is seen as a boon for the aftermarket business and repair facilities. Because the car fleet ages, extra repair work is required to maintain the older autos on the street. House owners are additionally more likely to make upgrades to their autos as a substitute of changing them.