According to a study by S&P Global Mobility, the average age of cars and trucks in the USA has risen to 12.6 years in 2024.
Todd Campau, Aftermarket Practice Lead, S&P Global Mobility, stated, "With average age growth, more vehicles are entering the prime range for aftermarket service, typically from 6 to 14 years of age." He further added, "With more than 110 million vehicles in that sweet spot -- reflecting nearly 38% of the fleet on the road -- we expect continued growth in the volume of vehicles in that age range to rise to an estimated 40% through 2028."
The study also showed that vehicle scrappage rates in the USA have mostly remained steady. As of January 2024, the scrappage rate was 4.6%, just slightly higher than the 4.5% rate during the same month in 2023.
The data shows that since 2020, 27 million passenger cars were scrapped, while only a little over 13 million new cars were registered. On the other hand, 26 million light trucks were scrapped, while 46 million new trucks were registered. Campau stated, "Consumers have continued to demonstrate a preference for utility vehicles, and manufacturers have adjusted their portfolio accordingly, which continues to reshape the composition of the fleet of vehicles in operation in the market."
The study also shows that the number of EVs on the road is increasing. The average age of EVs in the USA is 3.5 years and has mostly remained the same since 2019.
Campau said, "We started to see headwinds in EV sales growth in late 2023, and though there will be some challenges on the road to EV adoption that could drive EV average age up, we still expect significant growth in the share of electric vehicles in operation over the next decade."
Source: PRNewswire