Vehicles Getting Older: Average Age of Light Cars and Trucks in U.S. Rises Again in 2016 to 11.6 Years, IHS Markit Says
November 22 2016 - 6:00AM
Business Wire
Record number of vehicles in operation as well
The average age of light vehicles in operation (VIO) in the U.S.
has once again climbed slightly this year, to 11.6 years, according
to industry experts at IHS Markit (NASDAQ: INFO), a leading
provider of business information and analysis for the global
automotive industry.
Registrations for light VIO, including cars and light trucks
(SUVs/CUVs as well) in the U.S. also reached a record level of more
than 264 million -- an increase of more than 6.2 million (2.4
percent) since last year. This represents the highest annual
increase the auto industry has seen in the U.S. since it began
tracking VIO growth – breaking the record of 2.1 percent growth set
in 2015.
”Quality of new vehicles continues to be a key driver of the
rising average vehicle age over time,” said Mark Seng, director,
global automotive aftermarket practice at IHS Markit. “The
recession created an acceleration beyond its traditional rate due
to the nearly 40 percent drop in new vehicle sales in 2008-2009. In
the last couple of years, however, average age is returning to a
more traditional rate of increase.”
Adding vehicles to the fleet on the road is also a coup for the
automotive aftermarket industry – those in components
manufacturing, repair and service.
“Increasing numbers of vehicles on the road builds a new
business pipeline for the aftermarket,” Seng said. “A larger fleet
means more vehicles that will need repair work and service in the
future.”
Consumers holding onto vehicles longer; scrappage rate
remains flat
According to IHS Markit, consumers are continuing the trend of
holding onto their vehicles longer than ever. As of the end of
2015, the average length of ownership measured a record 79.3
months, more than 1.5 months longer than reported in the previous
year. For used vehicles, it is nearly 66 months. Both are
significantly longer lengths of ownership since the same measure a
decade ago.
When it comes to vehicles being scrapped, those taken out of
services during 2015 remained relatively flat compared to 2014,
with just over 11 million light vehicles retired out of the fleet,
representing about 4.3 percent of the overall population. This
figure is significantly less than the record high of more than 14
million vehicles that were scrapped in 2012.
As fleet ages, VIO shifts create new opportunities
The average age growth of the vehicle fleet will bring new
opportunity for the automotive aftermarket, the analysis says. The
40 percent drop in new light vehicle registrations experienced
during the downturn in 2008-10 is something that will be felt by
those businesses involved in the aftermarket for years to come due
to its significant impact on the various age segments of the
overall fleet. This measure is closely monitored, as it is
important to business planners in the aftermarket and service
industries – the people who manage inventories of parts required
and plan for sales and service activity accordingly.
According to IHS Markit, the shifting dynamic of the age of
vehicles in operation indicates the volumes of vehicles in the new
to five years-old category will grow 16 percent by 2021, while
vehicles in the six to 11 year-old range will grow just 5 percent,
and vehicles that are 12+ years old will grow 10 percent.
The oldest vehicles on the road are growing the fastest – with
vehicles 16 years and older expected to grow 30 percent from 62
million units today to 81 million units in 2021. IHS Markit
research also indicates more than 20 million vehicles on the road
in 2021 will be more than 25 years old.
Businesses in the automotive aftermarket are working to adjust
to the change in the market, and planning opportunities are
underway to address the changing landscape. Also, vehicle
manufacturers and dealers are working to identify additional new
vehicle sales opportunities as new models are replacing those
leaving the fleet.
About IHS Markit
(www.ihsmarkit.com)
IHS Markit (NASDAQ: INFO) is the automotive industry’s leading
source for market-wide insight, expertise and advanced planning
solutions. With a reputation of enabling better decisions and
better results for nearly a century, the world’s leading OEMs,
suppliers and their transportation partners rely on IHS Markit to
power growth, improve efficiency and drive a sustainable
competitive advantage.
Automotive offerings and expertise at IHS Markit span every
major market and, the entire automotive value chain -- from product
planning to marketing, sales and the aftermarket. Headquartered in
London, our automotive team is part of IHS Markit’s information and
analytics powerhouse that includes more than 15,000 colleagues in
150 countries, covering energy, chemical, aerospace and defense,
maritime, financial, technology, media and telecommunications. For
additional information, please visit www.ihsmarkit.com or email
automotive@ihsmarkit.com.
Editor’s Note: Average age and vehicles in operation based on a
snapshot of vehicles in operation on Jan. 1, 2016, the most recent
analysis from IHS Markit.
IHS Markit is a registered trademark of IHS Markit Ltd. All
other company and product names may be trademarks of their
respective owners © 2016 IHS Markit Ltd. All rights reserved.
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IHS MarkitMichelle Culver, +1
248-728-7496michelle.culver@ihsmarkit.comorPress Team+1
303-305-8021press@ihs.com
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