US auto market projected to go downwards in coming years image

A recent forecast estimates US new-vehicles sales to hit an all-time record this year, for the following ones to bring in a decline.

Almost all the projections made by analysts and automakers as well show the automotive industry will further grow in 2016, on its way to new record levels for the seventh consecutive year. If sales are seen to be somewhere between 17.6 million and 17.8 million units at the end of this year, the coming ones are quite an uncertainty. A recent report from the New Yorker consulting firm AlixPartners estimates US light-vehicle sales to go down to 17.5 million units in 2017, from the expected 17.8 million in 2016. Furthermore, the downward trend will likely keep going, the company said. 2018 is expected to bring 16.6 million units, for the bottom to be hit in 2019, when 15.2 million sales are projected. Afterwards, the market is said to slowly increase again, up to 16.8 million units by 2022.

Mark Wakefield, AlixPartners managing director and co-author of the annual report, believes the upcoming fall will be caused by a decrease of used-car prices that will hamper the new-car sales, a slow-growth economy and modestly higher interest rates. “The biggest factor is used-car prices,” he told Automotive News. “We are also past the point where many people are getting jobs and buying cars.”

Via Automotive News