This year marks the fifth straight year the average age of light vehicles in operation (VIO) in the U.S. has increased, hitting an all-time high, according to a report from S&P Global Mobility.
There are, however, a number of reasons to account for the record high, including a global microchip shortage, supply chain crisis, inventory challenges, and, not to mention, the transportation shift due to the pandemic.
The pandemic drove consumers from public transport and shared mobility to personal mobility and since vehicle owners couldn't upgrade their existing vehicles, the demand for used cars accelerated - boosting vehicle average age further, the report said.
Future outlook
The average age of light VIO in the U.S. is expected to rise through 2022 and 2023, as the pipeline for new vehicle production and sales continues to be weighed down by parts shortages, the report said.
The report also said that with the ongoing Russia-Ukraine crisis remains a potential impact to the new vehicle supply chain in the coming year.
The average age of EVs in the U.S. is 3.8 years of age this year, down from 3.9 last year, and has been hovering between 3 and 4.1 years since 2016.
However, interesting enough, the demand for BEVs over the years, even through the pandemic, has been rising, the report said.
