North America Automotive Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The North America Automotive Market is segmented by Vehicle Type (Passenger Cars, 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: 2018-2027
Base Year: 2021
CAGR: 6.63 %

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Market Overview

The North American automotive market was valued at USD 713.07 billion in 2021, and it is expected to reach USD 970.23 billion by 2027, registering a CAGR of about 6.63 % 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 the 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 crucial factors hindering the market growth potential, although a reversal has been registered in 2021, which is likely to continue over 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 2021, 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 in the electric vehicle market, and market shares of both OEMs and OES.

The scope of the report includes vehicle type (passenger cars, commercial vehicles (light commercial vehicles and medium and heavy commercial vehicles), and two-wheelers) and geography (United States, Canada, and Rest of North America)

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 battery electric vehicles over the last five years. For instance, in the United States, battery electric vehicles sales jumped from 269,033 in 2019 to 295,742 in 2020, witnessing a jump in sales by as much as 10% in 2020. However, the sales for BEVs came down slightly in 2021, reaching 241,842 during the same year. Though the 2021 sales proved flat to 2020, the growth rate since 2013 has been impressive. Although the global market plunged in 2020 due to the COVID-19 pandemic, the BEVs segment has witnessed growth, and the long-term forecast of BEVs sales is optimistic.

The role of incentives and mandates is key to the high demand for 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 proposed the implementation of the Safer Affordable Fuel-Efficient (SAFE) vehicles rule 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 the road by 2030.

North America Automotive Industry _Key Market Trends1

The United States Witnessed a Faster Growth Rate During the Forecast Period

The United States is one of the major automotive industries in the world, which contributes at least 3% to the overall gross domestic product (GDP) of the country. The country has manufactured close to 8.82 million vehicles in 2020, which is about 19% less than the previous year, 2019. This decline in manufacturing is mainly due to the COVID-19 pandemic and changes in the supply chains of the automobile industry.

As of June 2020, the majority of the ~250 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 the United States.

The government is also supporting the research and development of electric vehicles in the form of annual appropriations to the Office of Energy Efficiency and Renewable Energy (EERE).

The United States is witnessing enormous demand for electric vehicles, which is majorly catered by the Tier-1 companies. For instance, Tesla accounts a major share of the market. Tesla Model 3, Tesla Model X, and Tesla Model S accounted for 57% of the sales, and Chevy Bolt and Nissan LEAF together accounted for 9% of sales.

Furthermore, the government is supporting electrification through 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

Competitive Landscape

Ford, General Motors, and Fiat-Chrysler are some of the important players in the North American 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.

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 reducing overall costs.

Recent Developments

In January 2022, Tesla Inc. had a supply agreement with Talon Metals Corp., a subsidiary of Talon Nickel LLC, for the supply of nickel. This agreement will lead to the production of battery material from mine to battery cathode in a way to make the electric vehicle battery more environmentally friendly.

In October 2021, Daimler AG (Mercedes Benz) announced a USD 8.2 billion battery venture with the European automobile manufacturers Stellantis NV and Total Energies SE to secure the supplies for electric Mercedes Benz cars.

In September 2021, General Motors Company announced a supply agreement to map the future requirement with 2016-founded San Jose-based Lidar vendor company Cepton. The General Motors Company will procure lidars from 2023 and is set to integrate these lidars in nine different models.

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 Forces 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 NV

      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 - 2027.

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

The North America Automotive Market is valued at 821 Billion USD in 2018.

The North America Automotive Market is valued at 970 Billion USD in 2027.

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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