Toronto, Ontario — Proving they don’t just put on a great show in Las Vegas, the organization behind the annual SEMA show has unveiled its Future Trends report for 2023 this week, which dives deep into industry and economic outlooks, vehicle trends and lingering supply chain issues.
First touching on the organization’s namesake sector, the report leads off with the prediction that specialty-equipment part sales, while slow moving in 2022, are expected to pick up this year and carry on the incremental 3 to 4 percent growth of years past.
Similarly, ongoing supply chain constraints and sparse microchip availability means that auto sales stabilization is still a ways away, and likely won’t be felt until at least 2025.
Conversely, electric vehicle sales volumes continue to grow, with projections estimating that EVs will make up 39 percent of new vehicle sales by 2035.
New vehicle prices have reached a record high, according to the report. Currently sitting at an average transaction price of US$49, 507, the American consumer is paying 4.9 percent more for a new car now than in December 2021.
In pre and post-pandemic terms, the post-pandemic buyer is paying 28.1 percent more than they would have in December 2019. According to drivers, 77 percent believe now is not a good time to buy a car, as compared to 44 percent in 2019 and 32 percent in 2008—the height of the U.S.’s most recent recession.
While acknowledging the increased costs of repairs and vehicle ownership on the part of drivers, the report points out that businesses have been dealing with previously unseen costs as well.
The second quarter of 2022 saw the Producer Price Index reach a record high of 11 percent above baseline, though forecasts expect that figure to level out to about 2.3 percent by Q4 2024.