According to a recent report, the COVID-19 pandemic has significantly changed American driving habits, causing a major decline in driving despite increasing vehicle ownership.
What Happened: A report by The Wall Street Journal on Monday indicates that the number of vehicles on U.S. roads increased from 278 million in 2019 to 284 million in 2023, despite a sharp reduction in driving activities due to the pandemic. The average number of vehicles per household has remained at 2.2 for the past two decades, yet the number of trips taken has dropped by over a third since 2017.
Shifts towards remote work and decreased recreational trips have led Americans to spend more time at home. Consequently, miles driven per capita have declined since spring 2022 and remain below pre-pandemic levels. This trend is expected to persist, even with stores and workplaces reopening.
Interestingly, despite these changes in driving habits, new vehicle sales are projected to increase. S&P Global Mobility predicts that U.S. new-vehicle sales will rise by 2% in 2024, with sales expected to hover between 15.5 million and 17 million for at least the next five years.
Why It Matters: The shift in driving habits is occurring alongside changes in the auto market. In July, analysts predicted a price war due to an oversupply of vehicles. Global vehicle production was expected to exceed sales by 6% in 2023, leading to a surplus of 5 million vehicles. This surplus was expected to drive down prices, with electric vehicle manufacturers leading the way in price cuts.
The rise in electric vehicle (EV) sales has also been significant. The U.S. has seen an increase in new EV sales, suggesting a shift in consumer preference towards more sustainable vehicles.
Read Next: ‘Good Design,’ Says Elon Musk After Tesla Fan Shares Wishlist For ‘Futuristic’ $25K Compact EV
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