SANTA MONICA —The automotive industry faces another challenging year in 2022, marked by inventory shortages amid strong consumer demand, according to the car shopping guide Edmunds.
Edmunds analysts predicting that 15.2 million new cars will be sold in 2022, a 1.2% increase from their estimate of 15 million new vehicle sales in 2021, the company said in a news release.
“2021 marked an unusual year of highs and lows for the industry: Every automaker across the board struggled at the mercy of their suppliers and logistics amid chip and inventory shortages while simultaneously enjoying skyrocketing consumer demand and minimized spending on incentives,” said Jessica Caldwell, Edmunds’ executive director of insights. “Sales have been depressed since this spring, but consumer appetite for new vehicles continues to run high, which will only serve to build up deferred demand next year and beyond. In 2022 there won’t be a question of how many new vehicles consumers will buy, but how many vehicles automakers can actually produce.”
Beyond inventory shortages, Edmunds experts have put together their list of the biggest industry trends that will shape the road ahead in 2022:
- Shoppers are expected to pay more for option-rich, higher-trim vehicles.
- Leasing vehicles will become less popular.
- Buyers will consider “building to order” as long as inventory challenges remain.
- Used vehicle prices will surpass the $30,000 mark for the first time.