In the automotive industry's forecast, exciting news is on the horizon. Anticipations are high as new car sales are poised for a gradual uptick in the United States in the coming year. Moreover, December ushers in an unexpected surge, with U.S. new-vehicle sales projected to soar by a remarkable 13% thanks to enticing discounts and ample inventory. These developments indicate American auto market expansion and vigor.

Promising 2024 for U.S. Automotive Industry

U.S. new vehicle sales should rise after the 2020 pandemic and supply chain concerns. Sales of 15.6 million to 16.1 million autos are expected to climb 1% to 4%. This rise is projected despite S&P Global Mobility's 2.8% global car sales forecast.

The US automotive sector's recovery from the COVID-19 epidemic and supply chain interruptions since 2020 is predicted to boost new car sales next year.

Leading automotive statistics businesses predict a year-over-year growth of 1% to 4%, resulting in 15.6 million to 16.1 million car sales. These sales would be the biggest since 2019 when over 17 million new automobiles and trucks were sold domestically.

The global COVID-19 pandemic has caused manufacturing and supply chain issues for the car industry, resulting in 2022 sales of under 14 million automobiles, the lowest in almost a decade.

CNBC reported about this positive news regarding U.S. automotive industry.
Even a slight uptick in U.S. new car sales could be advantageous for consumers and the economy. This growth would signify an increase in the production of vehicles, potentially mitigating recent affordability concerns amid inflation, high interest rates, and record-high prices for new vehicles.

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Significantly, an uptick in U.S. sales in the upcoming year would represent the first consecutive sales growth for the automotive industry since the period of 2015-2016. The report also shared, on the lower end of the spectrum, Cox Automotive anticipates 15.6 million vehicle sales, primarily boosted by a rise in fleet or commercial sales. Cox suggests that retail sales are projected to remain relatively stagnant during this period.

In a recent blog post, Jonathan Smoke, the chief economist at Cox Automotive, anticipates that sales growth will remain limited and feeble in 2024. Moreover, in comparison to the chaos of the last three years, he says this expected trend is more normal. As a businessman, he finds it interesting to see how the economy changes quickly. But he also knows that this kind of change is generally bad for long-term business prospects.

Global New Car Sales Improvement

According to Carscoops, Analysts predict that around 88.3 million new light vehicles may be sold worldwide next year, as the auto industry rebounds from the effects of the Covid-19 pandemic and supply chain disruptions.

Global new light vehicle sales, as reported by S&P Global Mobility, are set to rise by 2.8% year-over-year in 2023, reaching nearly 86 million units, marking an 8.9% increase from 2022. Key markets like Europe, the United States, and China are expected to see sales growth next year. In Europe, sales may increase by 2.9% to 15.1 million units, despite reduced EV subsidies, economic concerns, and high car prices.

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