North America Automotive Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The North America Automotive Market is segmented by Vehicle Type (Passenger Cars, and Commercial Vehicles (Light Commercial Vehicles and Medium and Heavy Commercial Vehicles) and Two-Wheelers) and by Geography (United States, Canada and Rest of North America)

Market Snapshot

Market Summary
Study Period:

2018 - 2026

Base Year:



6.63 %

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Market Overview

The North America Automotive Market is projected to grow with a CAGR of about 7.22 % during the forecast period.

With growing stringent emission norms, automakers have been shifting their vehicle production more toward vehicle electrification, and the growing demand for commercial vehicles from logistics and e-commerce industry is one of the major factors that has been driving the market growth in the region.

However, the COVID-19 pandemic issue across the world and the implementation of the United States-Mexico-Canada (USMCA) trade agreement in 2020 are few crucial factors that are likely to hinder the market growth during the forecast period.

Among the countries in the region, Mexico has emerged as one of the largest auto manufacturing hubs, as automakers from the United States have established their production facilities there, owing to the many incentives offered by Mexico, such as low production costs and low tariffs. However, the United States captured a major share of about 80% in the market studied in 2019, owing to its high vehicle sales volume in the region.

Scope of the Report

The North American automotive industry outlook covers the growing demand for passenger cars, commercial vehicles, and two-wheelers in the region, investments made by OEMs to establish their presence in North America, emission regulations, developments towards electric vehicle market, and market shares of both OEMs and OES. The scope of the report includes:

Passenger cars, commercial vehicles (minivans, pickups trucks, and medium and heavy-duty trucks and buses), and two-wheelers are considered in the scope of the study.

Light commercial vehicles that are less than 3.5 metric tons have been considered (pickups and minivans).

Medium and heavy commercial vehicles that are greater than 3.5 metric tons have been considered (trucks and buses). 

Two-wheelers include all types of motorcycles like street bikes, dual-purpose, off-road recreation, competition, and OHV.

By Vehicle Type
Passenger Cars
Commercial Vehicles
Light Commercial Vehicles
Medium and Heavy Commercial Vehicles
By Geography
United States
Rest of North America

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Key Market Trends

Increasing Sales of Electric Vehicles

The increasing focus on reducing vehicular emissions has shifted the focus of the automotive industry toward electric vehicles, which is driving the market. With the growing environmental concerns, governments and environmental agencies are enacting stringent emission norms and laws that may increase the manufacturing cost of electric drive trains and fuel-efficient diesel engines in the coming years.

North America has witnessed an unprecedented demand for electric vehicles over the last five years. For instance, in the United States, the electric vehicles sales jumped from 194,479 in 2017 to 361,307 in 2018, witnessing a jump in sales by as much as 81% in 2018. However, the sales for EVs came down slightly in 2019, reaching 329,528 during the same year. Though the 2019 sales proved flat to 2018, the growth rate since 2013 still averaged an impressive 25% per year. Although the sales may plunge in 2020 due to the COVID-19 pandemic, the long-term forecast of EV sales is still optimistic.

The role of incentives and mandates is key for the high demand for the electric vehicles. Several incentives are being provided by the governments to encourage the sales of electric vehicles, as all these countries are focusing on reducing their vehicle emissions. Some of them are:

In the United States, the EPA and NHTSA have proposed the implementation of the Safer Affordable Fuel-Efficient (SAFE) vehicles rule to be implemented from 2021 to 2026. The rule may set the standards for corporate average fuel economy and greenhouse gas emissions for passenger and light commercial vehicles. The Zero Emission Vehicles (ZEV) Program requires OEMs to sell specific numbers of clean and zero emission vehicles (electric, hybrid, and fuel cell-powered commercial and passenger vehicles). The ZEV plan aims at putting 12 million ZEVs on road by 2030.

North America Automotive Industry Outlook_Key Market Trends1

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United States Witnessed Faster Growth Rate During the Forecast Period

United States is one of the major automotive industries in the world, which contributes about at least 3% to the overall Gross Domestic Product (GDP) of the country. The country has manufactured close to 10.88 million vehicles in 2019, which is about 3.7% less than the previous year, 2018. This decline in manufacturing is mainly due to the increase in production costs and changes in supply chains of the automobile industry.

The total vehicle sales in the United States were 17.58 million, out of which passenger vehicles accounted for 32%, SUVs for 46%, light commercial vehicles for 19%, and medium and heavy commercial vehicles accounted for 3% shares.

As of June 2019, the majority of the 270 million cars, trucks, and buses in the United States were powered by internal combustion engines using gasoline or diesel fuel. With the emergence of electric vehicles, the government has been providing various tax benefits to support the purchase of electric vehicles.

The credit for plug-in electric vehicles is a federal tax incentive for electric vehicles, where the credit ranges from USD 2,500 to USD 7,500 per vehicle, depending on the vehicle’s battery capacity. This type of credit is available after the sale of 200,000 qualifying vehicles in United States. As of June 2019, General Motors (GM) and Tesla were the major manufacturers that have recached 200,000-vehicle limit.

The government is also supporting the research and development of electric vehicles in the form of annual appropriations to Office of Energy Efficiency and Renewable Energy (EERE). The government enacted about USD 344 million in FY 2019 for vehicle technologies.

In 2019, about 0.33 million electric cars were sold in United States, with Tesla accounting to major share in the market. Tesla Model 3, Tesla Model X and Tesla Model S accounted to 57% of the sales and Chevy Bolt and Nissan LEAF together accounted for 9% sales.

Furthermore, the government is supporting electrification of through the programs and incentives like the FTA’s Low or No-emission Vehicle Program and the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project that help agencies purchase advanced technology transit buses.

North America Automotive Industry Outlook_Key Market Trend2

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Competitive Landscape

Ford, General Motors, Fiat-Chrysler are some of the important players in the North America Automobile Industry. The auto industry of the United States was previously dominated by the big three, General Motors, Chrysler, and Ford, who are currently losing their market share to automakers from relatively new players, such as Tesla and other foreign automakers based in Japan, South Korea, and Europe.

The foreign automotive manufacturers are expected to become a part of the mainstream automotive industry in the United States, to increase their market share in the United States, especially in the SUV segment.

The Mexican automotive industry is dominated by FCA, Ford, Toyota, General Motors, Mazda, Honda, and VW Group. Tier 1, 2, and 3 companies have seen new opportunities in supplying components to these OEMs and simultaneously reduce overall costs.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 By Vehicle Type

      1. 5.1.1 Passenger Cars

      2. 5.1.2 Commercial Vehicles

        1. Light Commercial Vehicles

        2. Medium and Heavy Commercial Vehicles

      3. 5.1.3 Two-Wheelers

    2. 5.2 By Geography

      1. 5.2.1 United States

      2. 5.2.2 Canada

      3. 5.2.3 Rest of North America


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 BMW AG

      2. 6.2.2 Daimler AG

      3. 6.2.3 Tesla, Inc.

      4. 6.2.4 Fiat Chrysler Automobiles N.V.

      5. 6.2.5 Ford Motor Company

      6. 6.2.6 General Motors Company

      7. 6.2.7 Honda Motor Company, Ltd.

      8. 6.2.8 Hyundai Motor Company

      9. 6.2.9 Nissan Motor Co., Ltd.

      10. 6.2.10 Groupe Renault

      11. 6.2.11 Toyota Motor Corporation

      12. 6.2.12 Volkswagen AG

      13. 6.2.13 Harley-Davidson

      14. 6.2.14 Yamaha Motor Co., Ltd.


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Frequently Asked Questions

The North America Automotive Market market is studied from 2018 - 2026.

The North America Automotive Market is growing at a CAGR of 6.63% over the next 5 years.

  • Tesla, Inc.
  • General Motors
  • FCA Group
  • Ford Motor Company
  • BMW AG

Are the major companies operating in North America Automotive Market.

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