Article
US auto market projected to shrink over next decade
The U.S. auto market is projected to decline significantly by 2040, pressured by lower birth rates, changing consumer behaviors and rising vehicle costs. According to a Bain & Company analysis, younger consumers are increasingly opting for alternatives like ride-sharing, while high monthly payments deter new car purchases. The share of 16-year-olds with a driver’s license has fallen to roughly 50% today, compared with nearly 70% from 1966 to 1984. As competition intensifies among automakers, the industry may need to consolidate to adapt to these shifts.
The U.S. auto market is facing a challenging outlook, with projections indicating a significant decline by 2040. Multiple factors, including lower birth rates, shifting consumer preferences, and increasing vehicle costs, are contributing to this downturn...
