The US passenger and light commercial vehicle market should be stable in 2020 after a slight drop of 2% in 2019
- In 2019, the US market for passenger cars and light utility vehicles (PC + LUV) is down 2% compared to 2018, for a volume of 17 million units. The Inovev classification of private vehicles (PC) takes into account sedans, MPVs and SUVs while light utility vehicles (LUV) are mainly light trucks and pick-ups that have a hybrid vocation, both utility and passenger transportation. This differentiation is important in understanding the evolution of the market because, while the passenger car market is down 4% (to 13.4 million units), the pick-up market is up 6% (to 3.1 million units).
- In 2019, the economic expansion phase which continued, a very low unemployment rate, rising average incomes, as well as access to very low and numerous credits, were factors of growth of consumption and helped maintain a relatively stable automotive market at a high level for almost 5 years now.
- However, the trade tensions initiated with neighbouring countries (Canada and Mexico), China and very soon Europe and the uncertainty linked to these tensions will have an impact on American growth. As a result, in 2020, Inovev forecasts that the American market should remain stable at +/- 1% change.
- In the medium term, current US policy does not go in the direction of a paradigm shift. The car remains a strong and traditional element of American culture. However, the nature of the US economy and its auto market has historically been cyclical (with strong upward or downward variations). The period of stability in the automotive market could therefore not last and could experience some strong movements in the next 10 years.
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