A waiting US market

Alexander Gruzdev: The predominant trend in the American automobile market in 2023 can be characterized as the reign of uncertainty. Despite challenges such as Covid-19, chip shortages, and increases in interest rates, the impact on vehicle sales was not as pronounced as anticipated. Surprisingly, despite the environmentally conscious speeches from politicians, sales of electric vehicle did not increase. The market seems to defy conventional forecasting rules. 

A.G.: In 2023, it is estimated that around 15.5 million new vehicles were sold, reflecting a 7% growth, with a significant increase of 15% in the third quarter alone. However, high interest rates pose a challenge, making new vehicle purchases less affordable for American consumers. On the other hand, the used vehicle market experienced a decline, reaching a level not seen in the past decade, according to Cox Automotive. Sales in this segment were expected to be around 35.7 million units, a decrease from 38.6 million in 2022 and more than 43 million in 2021.

A.G.: In the United States, electric vehicle sales accounted for only 13% of the market share, indicating that the country lags behind in global electric vehicle adoption. However, there are positive signs of growth, especially with the implementation of new subsidies to encourage sales. Tesla remains a dominant force, while Hyundai has made significant progress, ranking third in the North American region (second in Canada and third in the United States). Despite some success for certain brands, it appears that the overall demand for electric vehicles outstrips the current supply, highlighting a gap between supply and demand in the market.

A.G.: The aftermarket in the United States continues to show growth despite challenges in the automotive market. Estimates indicate that spare parts sales are expected to reach $389.4 billion in 2023, representing an 8.1% increase compared to 2022. While there may be slight variations in different projections, the consensus places the figure in the range of $370 billion to $390 billion. This growth underscores the resilience and strength of the aftermarket sector.

A.G.: The crisis has driven a significant increase in do-it-yourself (DIY) repairs. Several factors contribute to this trend, including rising costs (inflation), improved part availability on online platforms like Amazon or eBay, and the availability of assembly instructions on platforms like YouTube. These factors collectively contribute to the success of the more cost-effective DIY alternative. 

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