US Auto Market Will Remain Volatile In 2022
Car-ownership application Jerry has released their 2022 State of the American Driver Report which provides a thorough analysis of trends in the field of cars and the use of modern automobile technology, as well as the present driving habits.
Due to the rise in inflation and a recurrent pandemic, the buying and selling of the cars market are expected to remain volatile until 2022. Travel for business is making a slow return, and travel times are returning to the pre-pandemic standard. Outside the category of gasoline-powered vehicles, electric vehicle (EV) demand continues to be slow. Those who are thinking of purchasing EVs are driven by the cost savings in the face of climate change. Americans are split over the possibilities of autonomous automobiles.
The report examined is because of a nationwide survey of yank motorists ages 16-75, along with proprietary Jerry business data from more than 1.5 million U.S.-based motorists, and discovered that there is no evidence of a loss of revenue of car demand or even the cost of driving. The survey revealed that 80 percent of American drivers believe that a car is indispensable for routine or daily activities. However, they are also limiting their time in the car with 63% of respondents who said that rising fuel costs affected the amount of time they spent driving in 2021.
Key report include:
- Baby Boomers are still averse to trade-ins from dealers, while women are three times more likely to sell their homes on Facebook Marketplace. The top reasons to sell in 2021 include moving to an urban location, not having to commute and the rising cost of gas.
More Americans expect to sell their cars in 2022 than they did in 2021. Digital platforms (Autotrader, Facebook Marketplace, Craigslist, etc.) are the most popular way to sell. A third of people will go shopping in the event of a price drop. In stark contrast from the norm when they visit a car showroom, females tend to be more likely to think they are treated with respect as compared to men.
- Half of the respondents decided to drive rather than fly in 2021. And nearly
half (44 percent) of them plan to return to flying in 2022.
While business travel experiences make an unsteady return in part because of virtual meetings most Americans anticipate returning to the pre-pandemic norms of daily commutes. The cost of commutes has risen for those who claimed that rising prices for gas were the main reason behind the rise.
- Although ride-hailing seems to be ubiquitous to the majority of people, 50 percent of Americans haven’t utilized a ride-hailing application (Uber, Lyft, etc. ) With age and location being the primary distinction.
- One third of Americans who were surveyed don’t expect to own an EV during their lifetime, and half of them expect to do so in the next 10 years. But, they’re not making the effort to slow the pace of climate change.The majority of EV buyers are motivated because they save money on gasoline. Generation Y is the most enthusiastic group to switch to electric vehicles and are followed by Gen Z -they want EVs because they’re “cool” more than any other motive.
- Americans are divided on the possibilities of autonomy of vehicles they drive in their everyday lives. 40% of drivers never predicted to make use of an autonomous vehicle.
“Our report confirmed that pandemic-era effects on cost and inventory still impact vehicle exchanging, driving frequency, and involve driving among Americans,” stated Jerry data researcher Lakshmi Iyengar.“Americans were hit with sticker shock while purchasing used and new cars in 2021. No relief is on the horizon this year. This increases the cost of owning a car and leads to the need to reduce costs elsewhere. Despite the huge EV demand due to anticipated savings in cost, customers will not see immediate savings in the cost of buying an EV. It could happen in the next decade as charging infrastructure and technology become more advanced.”
Is the auto industry volatile?
The automobile industry is a highly volatile sector of the U.S. economy. … While the variance of auto sales also receded, this decline was smaller than the decline in output volatility.
Why is the car market going crazy?
The unraveling of the used-car market is the most tangible result of a problem that has plagued the global economy for the past year: a dire shortage of computer chips that has hobbled auto manufacturing. The lack of new cars hitting the market has caused a shortage of used cars, too, raising prices and crimping sales.
Is there a car shortage in the US?
The Washington Post reports that the automotive industry may produce a whopping 1 million fewer cars than usual this year, largely due to the same supply chain issues and chip shortages that caused toy shortages around the world and grocery shortages around the country.