Market Trends of North America Automotive Logistics Industry
Demand for Light Vehicle Production
- In North America, consumer preferences have shifted to sport utility vehicles and trucks, driving auto manufacturers to adapt their production to meet rising demand. Instances include the popularity of models like Ford Explorer and Chevrolet Silverado.
- Increased production of electric vehicles results from the increasing interest in hybrids and EVs. For example, in December 2023, Tesla's Gigafactory in Texas aimed to meet North America's growing demand for electric vehicles.
- The automotive industry in North America has been adapting to and investing in technologies to meet stringent emission standards, influencing the design and production of light vehicles. In August 2022, the US government signed the historic Inflation Reduction Act into law, which could prove to be the most critical economic and climate legislation in American history. The Act to reduce inflation, which has driven a revival in US manufacturing capacity, offers broad incentives for developing and manufacturing clean energy technologies.
- As the demand for light vehicle production rises, automotive logistics companies experience increased shipping volumes. More vehicles and components must be transported from manufacturing facilities to distribution centers and dealerships.
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EV Boost in United States
- Federal and state-level incentives have been crucial in promoting EV adoption. The federal government offers tax credits for the purchase of qualifying electric vehicles. For instance, the Qualified Plug-In Electric Drive Motor Vehicle Credit provides a credit of up to USD 7,500.
- Major automakers have made substantial commitments to electric vehicles. Companies like General Motors (GM), Ford, and others have announced plans to invest in developing and producing electric vehicles. In January 2024, Ford Motor Co. inked a deal with a Minnesota-based company to buy a fleet of 1,000 all-electric vehicles, specifically the F-150 Lightning and Mustang Mach-E.
- During the first 11 months of 2023, EV registrations exceeded 1 million units, which is about 7.4% of the total market (up from 5.4% at this same time in 2022). Experts also stated that around 1.1 million battery-electric vehicles (BEVs) were sold in 2023. Tesla sold 1,739,707 Model 3/Y cars in 2023.
- The market's sustainable growth also depends on regulatory developments, given ongoing discussions among federal and national parties regarding the rollback of 2025 fuel-economy standards and state authority under the Clean Air Act.
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