Chip shortages are a thing of the past, but new challenges—including affordability, interest rates, and potential tariffs—shape the road ahead.
How will economic and policy changes impact the U.S. auto market? The U.S. auto industry is set to see a moderate recovery in 2025, with light-vehicle sales forecasted to grow by nearly 3% to 16.2–16.4 million units. While supply-side challenges like chip shortages have eased, affordability and macroeconomic uncertainty under the new presidential administration remain key barriers to growth.
A potential Federal Reserve interest rate cut in 2025 could alleviate borrowing costs, further supporting consumer demand. Additionally, increasing leasing penetration—expected to exceed 30% by 2026—would offer lower monthly payment options, improving affordability. Our latest report on the U.S. automotive industry unpacks more US auto market trends by highlighting a five-year sales forecast, breakdowns of used-vehicles and leasing, analysis of normalized vehicle demand and inventory levels, tariff implications, and more.
Download the full report to uncover key insights and trends and how they can bolster your clients' portfolios.
What's inside
How light-truck mix vehicles are influencing U.S. automotive sales
The impact of interest rates on the industry
A deep dive into General Motors and its position in the auto market
