Automotive Sector in the United States
The automotive sector is one of the most important industrial and commercial sectors in the United States. It includes vehicle manufacturing, automotive parts, dealerships, vehicle distribution, repair and maintenance, financing, insurance, logistics, rental vehicles, aftermarket products, software, electric vehicles and a vast network of suppliers and service businesses.
The American automotive industry is also one of the country’s most technologically advanced manufacturing ecosystems. Modern vehicles combine mechanical engineering with electronics, batteries, software, artificial intelligence, connectivity, sensors, telecommunications and increasingly sophisticated driver-assistance systems.
The United States remains one of the world’s largest automotive markets. According to the U.S. Department of Commerce’s SelectUSA program, the country produced 10.6 million motor vehicles in 2024, while vehicle sales reached 16.3 million. Foreign-owned automakers accounted for nearly half of U.S. motor-vehicle production in 2024.
The industry also has a substantial international presence. In 2024, the United States exported more than $87 billion in motor vehicles and more than $85 billion in automotive parts, according to SelectUSA.
The automotive sector therefore plays an important role in U.S. manufacturing, employment, exports, technological development and regional economic growth.
What Is the U.S. Automotive Sector?
The automotive sector includes businesses involved in designing, producing, selling, maintaining and supporting motor vehicles.
Its major components include:
- Passenger vehicles
- Pickup trucks
- SUVs
- Commercial vehicles
- Heavy trucks
- Buses
- Motorcycles
- Electric vehicles
- Hybrid vehicles
- Automotive parts
- Engines and transmissions
- Batteries
- Automotive electronics
- Software
- Dealerships
- Vehicle financing
- Automotive insurance
- Repair and maintenance
- Tire businesses
- Vehicle rental
- Fleet management
- Automotive logistics
- Recycling and salvage
The sector therefore extends far beyond the factories where vehicles are assembled.
Economic Importance of the Automotive Industry
Automotive manufacturing creates demand throughout the broader economy.
A vehicle may contain thousands of individual components sourced from hundreds or even thousands of suppliers.
The automotive supply chain includes:
- Steel
- Aluminum
- Copper
- Glass
- Plastics
- Rubber
- Semiconductors
- Batteries
- Electronics
- Textiles
- Chemicals
- Software
- Machinery
- Logistics services
Automotive companies also purchase substantial quantities of professional services, engineering, financial services, advertising, transportation and information technology.
The Department of Commerce estimates that the broader U.S. automotive industry cluster employs more than one million people.
U.S. Automotive Manufacturing
Automotive manufacturing is one of the largest segments of U.S. manufacturing.
It includes:
- Vehicle assembly
- Engine manufacturing
- Transmission manufacturing
- Battery production
- Automotive electronics
- Body manufacturing
- Interior components
- Chassis
- Steering systems
- Braking systems
- Suspension
- Tires and wheels
The BLS employment data show the scale of the industry. The combined motor vehicles and parts manufacturing category had roughly 1 million payroll employees in late 2025, including approximately 302,000 in motor-vehicle manufacturing, 164,000 in vehicle body and trailer manufacturing and 542,000 in motor-vehicle parts manufacturing.
Vehicle Assembly Plants
Vehicle assembly plants bring together components from many suppliers.
The production process may include:
- Stamping
- Body construction
- Welding
- Painting
- Powertrain installation
- Interior installation
- Electronics installation
- Battery installation
- Software configuration
- Final inspection
- Testing
Modern plants are highly automated and use robotics extensively.
The Department of Commerce reports that approximately 40% of industrial robot installations in 2024 were in the automotive industry, highlighting the sector’s importance to industrial automation.
Major Vehicle Categories
The American automotive market is highly diversified.
Passenger Cars
Passenger cars include:
- Sedans
- Hatchbacks
- Coupes
- Convertibles
- Sports cars
Passenger cars remain important, although their market share has declined relative to larger vehicles.
SUVs
Sport utility vehicles have become one of the dominant vehicle categories in the United States.
The EPA reports that in model year 2024, approximately 66% of new vehicles were classified as trucks under NHTSA regulatory definitions, compared with 34% classified as cars.
SUVs appeal to consumers because of:
- Passenger capacity
- Cargo space
- Higher driving position
- Towing capability
- Availability of all-wheel drive
- Perceived versatility
Pickup Trucks
Pickup trucks are particularly important to the American automotive market.
They are used for:
- Personal transportation
- Construction
- Agriculture
- Landscaping
- Commercial work
- Towing
- Recreation
Full-size pickups represent an important part of U.S. vehicle sales and domestic production.
Commercial Vehicles
Commercial vehicle manufacturing includes:
- Delivery vans
- Cargo vans
- Light trucks
- Heavy trucks
- Buses
- Specialized vehicles
The growth of e-commerce and logistics has increased demand for delivery vehicles.
Heavy-Duty Trucks
Heavy trucks support:
- Freight transportation
- Construction
- Agriculture
- Mining
- Distribution
The segment includes tractor-trailers, vocational trucks, refuse trucks, construction trucks and specialized vehicles.
Electrification and alternative fuels are becoming increasingly relevant to the heavy-duty market, although the transition is more complex than for passenger vehicles because of payload, range and charging requirements.
Electric Vehicles
Electric vehicles are transforming the automotive industry.
Major categories include:
- Battery electric vehicles (BEVs)
- Plug-in hybrid electric vehicles (PHEVs)
- Hybrid electric vehicles
- Electric commercial vehicles
- Electric buses
- Electric trucks
EVs require major changes throughout the automotive supply chain.
Instead of relying primarily on engines, transmissions and exhaust systems, electric vehicles require:
- Battery packs
- Electric motors
- Power electronics
- Battery-management systems
- Charging systems
- Specialized software
Growth of Electric Vehicles in the United States
Electric vehicles have become a significant part of the American automotive market.
The U.S. Department of Energy has documented strong growth in combined battery-electric and plug-in hybrid sales. Its electric-drive roadmap reported that BEV and PHEV sales reached approximately 1.57 million in 2024, representing about 9.5% of U.S. vehicle sales.
Another U.S. government analysis reported that EVs accounted for more than 10% of U.S. car sales in 2024, depending on the vehicle and sales definition used.
The precise share varies according to whether statistics include only BEVs or also plug-in hybrids and which vehicle categories are counted.
Hybrid Vehicles
Hybrid vehicles combine an internal-combustion engine with an electric propulsion system.
They include:
- Conventional hybrids
- Plug-in hybrids
- Hybrid SUVs
- Hybrid pickup trucks
Hybrids can provide lower fuel consumption without requiring consumers to rely entirely on charging infrastructure.
They therefore occupy an important position between conventional gasoline vehicles and fully electric vehicles.
Battery Manufacturing
Battery production has become a strategic part of the U.S. automotive sector.
Battery factories manufacture:
- Battery cells
- Modules
- Battery packs
- Cathode materials
- Anode materials
- Battery-management systems
BLS employment data show that U.S. battery manufacturing employment was approximately 53,000 workers in late 2025.
Battery production is also closely connected to:
- Mining
- Chemicals
- Energy
- Electronics
- Recycling
- Transportation
Automotive Parts Industry
The automotive parts industry is larger than vehicle assembly in terms of employment.
Major categories include:
Engine Components
- Pistons
- Valves
- Crankshafts
- Fuel systems
- Cooling systems
Transmission Components
- Gears
- Shafts
- Clutches
- Transmission controls
Electrical Components
- Wiring
- Sensors
- Motors
- Control modules
Interior Components
- Seats
- Dashboards
- Carpets
- Door panels
Exterior Components
- Body panels
- Bumpers
- Lighting
- Glass
Chassis Components
- Suspension
- Steering
- Brakes
- Wheels
The transition toward EVs is changing the composition of automotive parts demand.
Automotive Electronics
Modern vehicles contain extensive electronic systems.
These include:
- Microprocessors
- Sensors
- Cameras
- Radar
- Displays
- Navigation
- Communication systems
- Infotainment
- Vehicle-control modules
Automotive electronics are increasingly important because modern vehicles are becoming software-driven platforms.
Automotive Semiconductors
Semiconductors are essential to modern automobiles.
They control:
- Engine systems
- Battery management
- Safety systems
- Infotainment
- Driver assistance
- Vehicle communications
- Electric motors
- Charging
Supply shortages during the early 2020s demonstrated how dependent vehicle production is on semiconductor supply chains.
Software-Defined Vehicles
The automotive industry is increasingly moving toward the concept of the software-defined vehicle.
Software can control:
- Vehicle performance
- Infotainment
- Navigation
- Driver assistance
- Battery management
- Energy consumption
- Connectivity
Some manufacturers increasingly use over-the-air software updates to modify vehicle functionality after production.
Advanced Driver Assistance Systems
Modern vehicles increasingly include driver-assistance technologies.
Examples include:
- Automatic emergency braking
- Adaptive cruise control
- Lane-keeping assistance
- Blind-spot monitoring
- Parking assistance
- Traffic-sign recognition
- Driver monitoring
These technologies rely on combinations of:
- Cameras
- Radar
- Ultrasonic sensors
- Software
- Artificial intelligence
Autonomous Driving
Autonomous vehicle technology remains one of the industry’s major long-term research areas.
Potential applications include:
- Robotaxis
- Autonomous delivery
- Highway automation
- Autonomous trucking
- Industrial vehicles
However, widespread fully autonomous driving remains technologically, legally and commercially challenging.
Automotive Artificial Intelligence
AI is increasingly being applied to automobiles and manufacturing.
Applications include:
- Driver assistance
- Autonomous driving
- Predictive maintenance
- Manufacturing inspection
- Supply-chain management
- Demand forecasting
- Vehicle design
- Customer service
AI-powered computer vision can identify defects during production, while machine learning can analyze vehicle sensor data.
Automotive Manufacturing Robotics
Automotive factories are among the most automated manufacturing environments in the world.
Robots are used for:
- Welding
- Painting
- Assembly
- Material handling
- Inspection
- Packaging
Collaborative robots are also increasingly being used to work alongside human employees.
Automotive Research and Development
Research and development is critical to automotive competitiveness.
U.S. automotive companies invest in:
- Electric propulsion
- Batteries
- Autonomous driving
- Safety
- Materials
- Software
- Manufacturing
- Energy efficiency
SelectUSA reports that the U.S. automotive industry invested nearly $33 billion in R&D in 2023, while U.S. affiliates of majority foreign-owned automotive companies spent almost $9 billion on R&D.
Automotive Dealerships
Vehicle dealerships represent an essential part of the retail side of the automotive industry.
Dealerships typically provide:
- New vehicles
- Used vehicles
- Financing
- Insurance products
- Vehicle maintenance
- Repairs
- Parts
- Accessories
- Trade-ins
Dealerships increasingly combine physical showrooms with online purchasing tools.
Used-Car Market
Used vehicles represent a major part of the American automotive market.
Consumers often choose used vehicles because they provide:
- Lower purchase prices
- Greater model selection
- Lower depreciation
- Financing flexibility
Used-car dealerships also operate extensive inspection, reconditioning and logistics operations.
Automotive Financing
Most vehicle purchases involve some form of financing.
Automotive finance includes:
- Bank loans
- Credit unions
- Manufacturer financing
- Dealer financing
- Leasing
Interest rates have a significant influence on monthly vehicle payments and consumer purchasing decisions.
Automotive Insurance
Vehicle ownership creates demand for insurance services.
Major categories include:
- Liability insurance
- Collision insurance
- Comprehensive insurance
- Commercial vehicle insurance
- Fleet insurance
The development of advanced driver-assistance systems and connected vehicles may eventually influence insurance pricing and risk assessment.
Automotive Repair and Maintenance
The aftermarket represents a huge part of the automotive economy.
Services include:
- Oil changes
- Brake repairs
- Tire services
- Engine repair
- Transmission repair
- Electrical diagnostics
- Battery replacement
- Air-conditioning repair
- Suspension repair
- Bodywork
The large U.S. vehicle fleet provides a substantial long-term customer base for repair businesses.
Tires and Wheels
The tire industry includes:
- Tire manufacturers
- Tire distributors
- Tire retailers
- Wheel manufacturers
- Alignment services
- Repair services
Tires remain essential regardless of whether a vehicle is powered by gasoline, diesel, hybrid systems or electricity.
Automotive Body Repair
Collision-repair businesses provide:
- Dent repair
- Paint
- Frame repair
- Glass replacement
- Bumper repair
- Body-panel replacement
Modern vehicles have increasingly sophisticated materials and sensors, making collision repair more technologically complex.
Automotive Recycling
End-of-life vehicles generate significant quantities of:
- Steel
- Aluminum
- Copper
- Plastics
- Glass
- Batteries
- Electronic components
Vehicle recycling helps recover valuable materials and reduce waste.
EV battery recycling is expected to become increasingly important as the number of retired electric vehicles grows.
Automotive Rental and Fleet Services
The sector also includes:
- Car rental
- Fleet management
- Corporate fleets
- Taxi fleets
- Ride-hailing fleets
- Delivery fleets
- Leasing companies
Fleet operators purchase large numbers of vehicles and require maintenance, insurance, financing and logistics.
Automotive Logistics
Vehicles and parts require sophisticated logistics systems.
Transportation methods include:
- Trucks
- Rail
- Ships
- Ports
- Warehouses
Automotive logistics involves both inbound delivery of components and outbound distribution of completed vehicles.
Automotive Trade
The United States is deeply integrated into international automotive trade.
In 2024, U.S. exports included more than $87 billion of motor vehicles and more than $85 billion of automotive parts.
The U.S. automotive market also relies heavily on imported vehicles, components and materials.
According to BEA data, imports of automotive vehicles, parts and engines decreased by approximately $52 billion in 2025, including declines in passenger cars and trucks, buses and special-purpose vehicles.
This illustrates the importance of automotive trade to the U.S. international economic system.
The North American Automotive Supply Chain
The United States, Canada and Mexico form an integrated North American automotive production system.
Vehicle components may cross national borders multiple times before a vehicle is completed.
This integration supports:
- Lower production costs
- Specialized manufacturing
- Regional supply chains
- Cross-border investment
- Large-scale production
Mexico is particularly important for automotive manufacturing and parts production.
Major U.S. Automotive Regions
Automotive manufacturing is concentrated in several regions.
Michigan
Michigan remains the historic center of the U.S. automotive industry.
The state has major concentrations of:
- Vehicle manufacturers
- Parts suppliers
- Engineering
- Research
- Automotive technology
Detroit and surrounding communities remain closely associated with the industry.
Ohio
Ohio has a substantial automotive manufacturing ecosystem.
It includes:
- Vehicle assembly
- Automotive parts
- Engines
- Batteries
- Engineering
- Logistics
Indiana
Indiana is an important automotive manufacturing state with major concentrations of:
- Vehicle assembly
- Engines
- Transmission production
- Automotive parts
The state benefits from its central location and transportation infrastructure.
Kentucky
Kentucky has developed a major automotive manufacturing base.
Important activities include:
- Vehicle assembly
- Automotive parts
- Engine manufacturing
- Battery-related investment
Alabama
Alabama has become an important center for modern automotive manufacturing.
The state has attracted major investments in:
- SUVs
- Pickup trucks
- Automotive parts
- Electric vehicles
- Batteries
Tennessee
Tennessee has attracted substantial automotive investment.
Its advantages include:
- Central location
- Transportation infrastructure
- Skilled workforce
- Manufacturing ecosystem
The state is increasingly important in EV and battery production.
South Carolina
South Carolina has developed automotive and advanced-manufacturing clusters involving:
- Vehicles
- Automotive components
- Tires
- Batteries
- Logistics
Georgia
Georgia has a diverse transportation and automotive ecosystem.
Its location, ports and logistics infrastructure make it attractive for automotive manufacturers and suppliers.
Texas
Texas has a large and growing automotive ecosystem connected to:
- Electric vehicles
- Trucks
- Batteries
- Technology
- Manufacturing
- Logistics
Its large domestic market and industrial infrastructure support automotive investment.
Automotive Employment
Automotive employment includes much more than factory workers.
Jobs exist in:
- Manufacturing
- Engineering
- Software
- Sales
- Dealerships
- Finance
- Insurance
- Repair
- Logistics
- Marketing
- Research
- Design
BLS data show that the combined motor-vehicle and parts manufacturing industry employed roughly 1 million payroll workers in late 2025.
The wider automotive cluster, including related industries and services, employs more than one million people according to SelectUSA.
Automotive Workforce Transformation
The automotive workforce is changing as vehicles become more technologically advanced.
Traditional skills remain important, including:
- Welding
- Machining
- Assembly
- Mechanical repair
But demand is increasingly growing for:
- Software engineers
- Electrical engineers
- Battery specialists
- Robotics technicians
- Data scientists
- Cybersecurity specialists
- Electronics technicians
The modern automotive worker increasingly needs a combination of mechanical and digital skills.
Automotive Cybersecurity
Connected vehicles create new cybersecurity challenges.
Modern vehicles communicate through:
- Cellular networks
- Wi-Fi
- Bluetooth
- Vehicle-to-cloud systems
- Navigation systems
Cybersecurity is therefore becoming an important automotive discipline.
Manufacturers must protect:
- Vehicle software
- Customer data
- Communication systems
- Safety-critical systems
Connected Vehicles
Connected vehicles can communicate with:
- Manufacturers
- Mobile applications
- Cloud platforms
- Navigation services
- Emergency services
Features may include:
- Remote vehicle control
- Vehicle diagnostics
- Software updates
- Location services
- Maintenance notifications
Connectivity is transforming the automobile from a standalone mechanical product into a networked digital platform.
Automotive Challenges
The U.S. automotive industry faces several major challenges.
High Vehicle Prices
New vehicles have become expensive relative to historical consumer incomes.
High prices can affect affordability and increase demand for used vehicles.
Interest Rates
Automotive financing costs influence monthly payments.
Higher interest rates can reduce demand for new vehicles and increase the importance of lower-priced vehicles.
Supply Chains
Manufacturers remain vulnerable to:
- Semiconductor shortages
- Battery-material shortages
- Shipping disruptions
- Geopolitical conflicts
- Trade restrictions
Supply-chain diversification has therefore become a strategic priority.
Labor Costs
Automotive manufacturing requires highly skilled workers.
Wages, benefits and labor negotiations can significantly affect production costs.
EV Transition
The transition to electric vehicles requires enormous investment.
Manufacturers must develop:
- Batteries
- Electric motors
- Charging systems
- New factories
- Software
- New supply chains
At the same time, consumer adoption rates and market preferences can change rapidly.
U.S. Automotive Regulatory Environment
Government regulation has historically played an important role in the automotive sector.
Areas of regulation include:
- Vehicle safety
- Fuel economy
- Emissions
- Consumer protection
- Manufacturing
- Workplace safety
The regulatory environment has also changed significantly in 2025–2026.
In February 2026, the EPA finalized a rule rescinding the 2009 greenhouse-gas Endangerment Finding and eliminating subsequent federal GHG emission standards for motor vehicles and engines. This represents a major change in the federal regulatory framework and should be considered when analyzing the future direction of U.S. automotive policy.
State policies, however, can continue to differ from federal policy, making the regulatory environment complex for manufacturers and consumers.
Fuel Economy and Vehicle Technology
The EPA’s latest Automotive Trends Report shows that vehicle technology continues to evolve.
For model year 2024:
- Average new-vehicle real-world fuel economy reached a record 27.2 miles per gallon.
- Average fuel economy had increased 41% compared with model year 2004.
- Approximately 66% of new vehicles were classified as trucks under NHTSA definitions.
- Battery-electric and plug-in hybrid vehicles contributed to improvements in overall fuel economy.
These figures demonstrate how vehicle design has changed even as consumers have increasingly favored SUVs and pickup trucks.
Automotive Innovation
The U.S. automotive sector is increasingly connected with several other technology industries.
Important innovation areas include:
- Artificial intelligence
- Robotics
- Semiconductors
- Batteries
- Cloud computing
- Sensors
- Telecommunications
- Cybersecurity
- Autonomous driving
- Advanced materials
This means future automotive competitiveness will depend increasingly on both traditional engineering and digital technology.
Opportunities in the U.S. Automotive Sector
The changing automotive market creates opportunities for businesses of many sizes.
Electric Vehicles
Opportunities include:
- Battery manufacturing
- Charging infrastructure
- EV repair
- Battery recycling
- Charging software
- Power electronics
Automotive Software
Companies can develop:
- Vehicle operating systems
- Navigation
- Fleet software
- Diagnostic software
- Cybersecurity
Automotive Parts
Specialized suppliers can provide:
- Electronics
- Sensors
- Batteries
- Interior components
- Lightweight materials
Aftermarket Services
Repair businesses can specialize in:
- EV servicing
- Diagnostics
- ADAS calibration
- Battery systems
- Traditional mechanical repair
Fleet Services
Growing delivery and commercial transportation needs create opportunities in:
- Fleet management
- Vehicle tracking
- Maintenance
- Financing
- Leasing
Future of the U.S. Automotive Sector
The automotive industry is likely to undergo continued structural change over the next decade.
1. Electrification
EVs and hybrids will remain important parts of the industry’s product strategy.
2. Software-Defined Vehicles
Vehicles will increasingly depend on software for functionality, connectivity and performance.
3. Artificial Intelligence
AI will influence manufacturing, vehicle operation, customer service and product development.
4. Advanced Driver Assistance
More vehicles will incorporate sophisticated driver-assistance technologies.
5. Manufacturing Automation
Robotics will continue increasing factory productivity.
6. Battery Innovation
Battery technology will remain critical to electric transportation.
7. Domestic Supply Chains
Manufacturers will continue evaluating domestic and regional sourcing.
8. Connected Vehicles
Vehicles will become increasingly integrated with cloud services and digital platforms.
9. New Mobility Models
The industry may increasingly incorporate:
- Car subscriptions
- Ride-sharing
- Autonomous fleets
- Mobility services
- Fleet-as-a-service
10. Automotive Recycling
Battery and vehicle recycling will become increasingly important as the EV fleet grows.
U.S. Automotive Sector: Key Statistics
| Indicator | Latest available figure |
|---|---|
| U.S. motor vehicle production, 2024 | 10.6 million |
| U.S. vehicle sales, 2024 | 16.3 million |
| Automotive cluster employment | More than 1 million |
| Motor vehicles exported, 2024 | More than $87 billion |
| Automotive parts exported, 2024 | More than $85 billion |
| Automotive R&D investment, 2023 | Nearly $33 billion |
| Foreign-owned automotive R&D, 2023 | Nearly $9 billion |
| Motor vehicles & parts payroll employment, late 2025 | About 1.0 million |
| Battery manufacturing employment, late 2025 | About 53,000 |
| BEV + PHEV sales, 2024 | About 1.57 million |
| BEV + PHEV sales share, 2024 | About 9.5% |
| Average new-vehicle real-world fuel economy, MY2024 | 27.2 mpg |
Sources: U.S. Department of Commerce, U.S. Bureau of Labor Statistics, U.S. Department of Energy and U.S. Environmental Protection Agency.
Automotive Categories for a U.S. Business Directory
A comprehensive business directory can organize the American automotive sector into categories such as:
- Automobile Manufacturers
- Electric Vehicle Manufacturers
- Hybrid Vehicle Manufacturers
- Commercial Vehicle Manufacturers
- Truck Manufacturers
- Bus Manufacturers
- Motorcycle Manufacturers
- Automotive Parts Manufacturers
- Automotive Electronics
- Battery Manufacturers
- Automotive Semiconductor Companies
- Engine Manufacturers
- Transmission Manufacturers
- Tire Manufacturers
- Automotive Glass
- Automotive Interior Manufacturers
- Automotive Exterior Parts
- Automotive Lighting
- Automotive Sensors
- Automotive Software
- Autonomous Driving Technology
- ADAS Technology
- Automotive Cybersecurity
- Automotive Dealerships
- New Car Dealers
- Used Car Dealers
- Luxury Car Dealers
- Electric Vehicle Dealers
- Commercial Vehicle Dealers
- Motorcycle Dealers
- Automotive Financing
- Vehicle Leasing
- Automotive Insurance
- Auto Repair Shops
- Automotive Service Centers
- Tire Shops
- Auto Body Shops
- Collision Repair
- Auto Glass Services
- Automotive Detailing
- Car Washes
- Auto Parts Stores
- Used Auto Parts
- Automotive Recycling
- Salvage Yards
- Vehicle Rental
- Fleet Management
- Automotive Logistics
- Vehicle Transportation
- Automotive Engineering
- Automotive Design
- Automotive Testing
- Automotive Research
- Automotive Consulting
- Automotive Robotics
- Factory Automation
- EV Charging Companies
- EV Charging Stations
- Battery Recycling
- Automotive Technology Companies
Conclusion
The automotive sector remains one of the most important industrial ecosystems in the United States. It combines manufacturing, engineering, technology, retail, finance, insurance, logistics and professional services into a massive interconnected economic network.
The scale of the industry is substantial. The United States produced 10.6 million motor vehicles and sold 16.3 million vehicles in 2024, while automotive exports exceeded $87 billion for vehicles and $85 billion for parts.
The industry is also changing rapidly. Traditional internal-combustion vehicles remain central to the market, while hybrids, battery-electric vehicles, advanced driver-assistance systems, connected vehicles and software-defined platforms are becoming increasingly important.
At the manufacturing level, automation and robotics are transforming production. At the dealership level, digital retail and online purchasing are changing the customer experience. In the aftermarket, diagnostic technology and EV-specific repair skills are creating new requirements for service businesses.
The automotive supply chain is also becoming strategically important. Semiconductors, batteries, critical materials, software and domestic manufacturing capacity are increasingly viewed as essential components of economic and national security.
The future U.S. automotive industry will therefore be defined by a combination of traditional automotive expertise and advanced technology. Companies that can successfully combine mechanical engineering, electronics, software, artificial intelligence, automation and efficient supply chains will be well positioned to compete in the next generation of American mobility.
For businesses, investors and entrepreneurs, the sector offers opportunities across vehicle manufacturing, automotive parts, EV infrastructure, batteries, software, dealerships, repair, fleet management, logistics and automotive technology.
The United States is likely to remain one of the world’s most important automotive markets and manufacturing centers, even as the technologies, business models and vehicles themselves continue to evolve.