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Thursday, 13 January 2022 23:07

Cox Automotive Makes 10 Predictions for Auto Industry in 2022

Index

...each of the final four months of 2021, according to the Manheim Used Vehicle Value Index. Retail prices followed, with the average used-vehicle listing price above $28,000 in December 2021, a record.

 

Used-vehicle prices normally increase in the spring, so the market will see further gains. In the second half of 2022, however, the team is forecasting price increases to end, and a more normal pattern of depreciation to resume.

 

3: Tight Vehicle Supply Will Gradually Improve

 

The central story for the auto industry in 2021 was tight inventory. Supply chain disruptions and production slowdowns due to COVID outbreaks wreaked havoc on product availability, and never in memory was new-vehicle inventory lower. In the second half of 2021, inventory was roughly one-third of the pre-pandemic level, dropping below 1 million units.

 

The process will be slow, but the Cox Automotive team believes new vehicle inventory issues will gradually improve in the year ahead: The worst of the "empty-lot syndrome" is likely in the rearview mirror.

 

4: EV Growth Will Outpace Industry Growth

 

While the overall new-vehicle market struggled in 2021 and was up only 3.5% from a rough 2020, the market for electrified vehicles boomed. Hybrids, plug-in hybrids and pure battery electric vehicles sales surged, with new entries and plenty of newly interested buyers. Tesla is still the dominant brand in the pure EV market, but new product from Ford, Hyundai, Kia, Volkswagen and Volvo are driving solid growth.

 

Gas prices are elevated going into 2022, and 38% of new-vehicle shoppers are now considering...


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