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Thursday, 13 January 2022 15:07

Cox Automotive Makes 10 Predictions for Auto Industry in 2022

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In the early days of 2022, the Cox Automotive Industry Insights has team laid out 10 trends that will shape the auto industry in the year ahead.

Overall, the Cox Automotive team is optimistic for the industry. New-vehicle sales are expected to reach 16 million, an increase of more than 7% from 2021, while used-vehicle sales will remain strong and above 39 million. Inventory will continue to be challenged in the first half of 2022 but should improve in the second half. Unlike 2021, the second half of 2022 will likely be stronger than the first half. 

 

When it comes to crystal balls and predictions, however, even the Cox Automotive Industry Insights team knows that looking forward and into the future is never easy.  

 

"As we move into 2022, our team has a number of expectations for the industry," said Cox Automotive Chief Economist Jonathan Smoke. "We believe the auto business is in for a healthy year. Yes, there will be unexpected pitfalls, but those who remain flexible and agile will manage just fine in the year ahead."

 

The Cox Automotive Industry Insights team will be particularly focused on these 10 trends that will shape the auto business in 2022.

 

1: Vehicle Demand Will Remain Robust, Especially Through the First Half

 

While the pandemic has been rough on many U.S. consumers, there is sufficient demand in the market to support healthy new- and used-vehicle sales in the year ahead. Recent surveys indicate consumers are expecting higher vehicle prices in 2022, but enough buyers will be in market to support 16 million new-vehicle sales, according to the Cox Automotive 2022 forecast. Total used-vehicle sales are forecast to be 39.3 million, down slightly from 2021 but still a healthy volume.

 

2: Used-Vehicle Values Will Depreciate Again, After the Spring

 

Last year, with new-vehicle inventory historically low, used-vehicle demand increased notably, driving prices higher. At auction, used-vehicle values set new records in...


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