Average age of US cars hits new high

Motorists in the United States are hanging on to their vehicles for longer as supply chain problems limit the arrival of new stock, according to a report from S&P Global Mobility.

The average age of light vehicles in operation in the US this year has increased to 12.2 years, which is nearly two months more than the figure from a year ago, the report says.

It adds the average age of light vehicles on the road is expected to climb through 2022 and 2023, as new vehicle production and sales continue to be affected by parts shortages.

The Covid-19 pandemic led some consumers to ditch using public transport and shared transport in favour of personal cars. Since customers could not upgrade their vehicles, demand for used cars has accelerated and lifted the average vehicle age further, notes S&P.

Already stressed global supply chains have also faced fresh pressure recently from lockdown measures in China and the war in Ukraine, which has increased delivery times for cars, reports Reuters. 

Supply chain constraints for the vehicle industry has led to a decrease in vehicle scrappage in the US and also been a factor for the rise in average age over time.

The report adds demand for battery electric vehicles in the US has been expanding rapidly over the past few years.