Typical age of U.S. vehicles hit record 12.1 several years in 2020-IHS Markit

June 14 (Reuters) – The regular age of U.S. cars and light-weight vehicles rose to a history 12.1 decades in 2020, as Us citizens drove fewer miles and scrapped extra vehicles during the COVID-19 pandemic, in accordance to IHS Markit.

The analysis business reported the two-thirty day period enhance in vehicles’ average age in excess of the 2019 determine could be shorter-lived as income of both equally new and used automobiles continue on to pick up as the pandemic eases.

Motor vehicle miles traveled in the United States declined additional than 13{c9ada2945935efae6c394ba146a2811ce1f3bfd992f6399f3fbbb16c76505588} in 2020, according to IHS, while more than 15 million vehicles were being scrapped – about 5.6 percent of the overall auto population.

Ordinarily, such a large scrappage rate would lead to regular car age to decrease, the organization claimed. But less miles traveled, put together with lessen automobile product sales during the pandemic, experienced the reverse result, with normal age increasing from 11.9 years in 2019.

IHS scientists also mentioned an ongoing shortage of semiconductors, which slice into car or truck output, resulted in lessen supplier inventories and inflated transaction charges, in switch leading to a concurrent increase in applied vehicle prices.

The business said these factors could trigger the average motor vehicle age to go back down in 2021, as additional house owners provide or trade in their older utilised vehicles.

Reporting by Paul Lienert in Detroit enhancing by Jonathan Oatis

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