Study sees US automotive market the richest in the world image

While the American car market has yielded the honor of being the biggest single auto market in the world to China, the US remains the richest when the value of new car and light truck sales are taken into account, says a new study.

According to research conducted by TrueCar Inc., the total value of new vehicles in the US stood at $570.9 billion in 2014, exceeding its larger rival China by around $161 billion. The figures show a large gap between China and the US in favor of the former when it comes to sales, though – China was close last year to surpass the 20 million new vehicle (counting just passenger vehicles) mark, with 19.7 million new autos – far better than America’s end figure of 16.5 million new cars and trucks. The difference simply resides in the two countries consumer purchasing power – the bulk of Chinese customers are nowhere near the average US level and thus average auto prices stateside are far above those in the second-largest world economy.

Based on research conducted by TrueCar over China’s models and trims, the average new vehicle’s manufacturer suggested retail price stands at $20,805, while back in the US it climbs to $34,537. Total value in the US last year was of $570.9 billion for the new-vehicle sales, while the Chinese figure stood at “just” $409.9 billion. This underlines the global importance of the US market, even as China overtook it in terms of sales back in 2009 – automakers know that America remains a source of great profit and they also don’t have to split the money with a joint-venture partner, as the law coerces them in China.

Via Automotive News Europe