Total North America Passenger Cars Sales & Trends (Since 2005)
According to the OICA, the total passenger car sales in North America in 2022 was 13.9 million units, a decrease of 7.8% from 2021. The United States is the largest car market in North America, accounting for over 90% of the region’s sales volume. Canada is the second largest car market in North America, with sales of 2.2 million units.
The decline in car sales in North America is due to a number of factors, including the COVID-19 pandemic, chip shortages, and rising inflation. The COVID-19 pandemic has disrupted supply chains and led to production delays, while chip shortages have also affected production. Rising inflation has made cars more expensive, which has also dampened demand.
Despite the decline in car sales, there are some positive trends in the North American passenger car market. The market share of SUVs has increased significantly in recent years, and it is expected to continue to grow in the coming years. In 2022, SUVs accounted for 70% of new car sales in North America, up from 55% in 2019.
The North American passenger car market is expected to recover in the coming years, but it is unlikely to return to the levels seen before the COVID-19 pandemic. The market is expected to grow at a slower pace than in previous years, and the shift to SUVs is expected to continue.
North American Automotive Market Trends
North America, primarily encompassing the United States, Canada, and Mexico, has a rich automotive history and has been at the forefront of many global automotive trends. The most significant trend over the decade was the declining popularity of traditional sedans in favor of SUVs, crossovers, and trucks. This was driven by low fuel prices, the versatility of SUVs, and changing consumer preferences.
Electric vehicles (EVs) began to capture a larger market share, driven by improvements in battery technology, charging infrastructure, and successful models like the Tesla Model 3. Initiatives and incentives, both at the federal and state levels, further encouraged the adoption of EVs. Especially after the “Dieselgate” scandal involving Volkswagen, diesel passenger vehicles saw a decline in popularity in North America, a region where diesel was already less popular than in places like Europe.
Modern cars became increasingly connected, with features such as advanced infotainment systems, smartphone integration, onboard Wi-Fi, and more. Consumers came to expect a higher level of tech integration in their vehicles. While fully autonomous passenger vehicles were not commercialized by 2021, there was significant investment and progress in this area. Many cars started featuring advanced driver-assistance systems (ADAS) like adaptive cruise control, lane-keeping assist, and automatic emergency braking.
Following the challenges of the 2008 financial crisis, American automakers like General Motors, Ford, and Chrysler (as part of Stellantis) saw a resurgence in the 2010s, with revamped line-ups, a focus on profitability, and investments in future technologies. Online car sales and direct-to-consumer models, particularly championed by Tesla, began to challenge traditional dealership models, leading to debates and legal battles in several states over sales regulations.
The pandemic in 2020 temporarily disrupted supply chains, halted production, and reduced car sales. However, it also accelerated certain trends, such as digital car sales and heightened interest in personal vehicle ownership due to concerns about public transportation.
