A market rooted in light trucks and U.S. automakers
Amid the semiconductor shortage, light trucks remain the most popular vehicle type in the country. U.S. light truck sales amounted to under 10.9 million units in 2022, down by around six percent compared to 2021. Meanwhile, the number of cars sold in the U.S. has been decreasing from a staggering 11.4 million units in 1973 to a little just under 2.9 million units in 2022, as U.S. consumer demand has been shifting to larger vehicles over the past few decades. This market slowdown—due both to supply constraints and soaring inflation rates—came as the industry struggled to recover from the loss in demand and revenue incurred during the COVID-19 pandemic.General Motors, Chrysler LLC, and Ford Motor are the key American automakers, although Chrysler LLC is a fully-owned subsidiary of the Europe-based Stellantis. In addition to these carmakers, Tesla's market share is rising due to the increasing adoption of electric vehicles. General Motors is the vehicle manufacturer with the highest market share, followed by Toyota, Ford, and Stellantis.
War and profitability challenge the industry
Fuel prices in the U.S. have been increasing throughout the pandemic as well as during Russia's invasion of Ukraine, with diesel prices soaring over five U.S. dollars per gallon by March 10, 2022. The U.S. has increased its national petrol production through hydraulic fracking to ease dependence on Russian crude oil exports; however, market uncertainty has led to inflation despite the U.S.'s increased self-reliance. While retail gasoline prices have been decreasing during the second half of 2022, they remained higher than those recorded in 2019, before these market disruptions.In parallel, the new energy vehicle market has also gained popularity. Nearly 918,500 plug-in electric light vehicles were sold in the U.S. in 2022—a 51.17 percent year-over-year increase. The Tesla Model Y was among the five best-selling passenger cars and sport-utility vehicles in 2022, with the Model 3 also in the top fifteen. Tesla recorded a market capitalization of over one trillion U.S. dollars in April 2022, ranking among the world's largest companies, though the company’s share price on the Nasdaq stock exchange has since dropped, impacted by controversies surrounding Tesla’s CEO. Boosted by Tesla's success, the U.S. electric vehicle industry attracted startup companies like Rivian, Lucid Motor, and Canoo. Despite the boom in the market, these startups have challenges ahead; Rivian, which started its vehicle deliveries in 2021, recorded a net loss of close to 6.75 billion U.S. dollars in 2022.
