Average Age of Vehicles on the Road Remains Steady at 11.4 years, According to IHS Automotive
June 09 2014 - 8:00AM
Business Wire
U.S. Vehicles in Operation (VIO) Hits Record Levels at More than
252 Million; Scrappage Rate Declines Significantly
The combined average age of all light vehicles on the road in
the U.S. remained steady at 11.4 years, based on a snapshot of
vehicles in operation taken Jan. 1 of this year, according to IHS
Automotive, which incorporated Polk into its business last
year.
Total light vehicles in Operation (VIO) in the U.S. also reached
a record level of more than 252,700,000 -- an increase of more than
3.7 million (1.5 percent) since last year, said the IHS Automotive
analysis from July 2013. In addition, new vehicle registrations
outpaced scrappage by more than 24 percent for the first time in a
decade, according to the analysis.
The average age is in line with the trend shift first seen in
2013, in which the combined fleet of cars and light trucks on the
road is older than ever. New analysis, however, indicates the
average age of light trucks has increased in the past year to the
same age as passenger cars, both at 11.4 years. This milestone
marks the first time this has happened since 1995, when the data
was first reported.
“In our history of tracking, we have seen a gradual increase in
the average age of vehicles on the road,” said Mark Seng, director,
aftermarket solutions and global aftermarket practice leader at IHS
Automotive. “This year, we’re seeing somewhat of a plateau in the
market, and expect it to remain over the next few years, without a
major change in either direction. We attribute this to a number of
factors, including the economy and the increasing quality of
today’s automobiles.”
Looking ahead, IHS forecasts that average age of vehicles is
likely to remain at 11.4 years through 2015, then rise to 11.5
years by 2017 and 11.7 years by 2019. This rate of growth is
slowing as compared to the last five years due to the substantial
increase in new vehicle sales.
Scrappage Rates Decline amid VIO Growth
The number of vehicles scrapped in 2013 was significantly fewer
than in previous years, with just over 11.5 million vehicles
scrapped during the 12-month timeframe analyzed by IHS Automotive.
In comparison, a record high of more than 14 million vehicles were
scrapped in 2012. This while VIO is up 1.5 percent, a rate the auto
industry hasn’t seen in the U.S. since 2004-2005.
Dynamics of Fleet Age and Mix
With the shift in ownership comes shift in the age of vehicles
within segments of the overall fleet, which is important to
business planners in the aftermarket and service industries so they
can manage inventories of parts required and plan for sales and
service activity accordingly.
Based on the growth of new vehicle registrations in the past few
years as the U.S. auto industry has rebounded, IHS Automotive
forecasts that the volume of vehicles 0-5 years old will increase
by 32 percent over the next five years while vehicles in the 6-11
year old category will decline by 21 percent. Because of improved
quality and consumers holding their cars and light trucks longer,
vehicles 12-plus years old continue to grow and will increase by 15
percent by 2019.
The IHS Automotive aftermarket team is working with customers in
all areas of the aftermarket to help them best identify
opportunities and specific planning efforts that may help improve
their business. Likewise, business planning opportunities are under
way at the OEMs to help them identify additional sales
opportunities as vehicles are taken out of service and newer
vehicle are coming into the U.S. vehicle fleet.
About IHS
(www.ihs.com)
IHS (NYSE: IHS) is the leading source of information, insight
and analytics in critical areas that shape today’s business
landscape. Businesses and governments in more than 165 countries
around the globe rely on the comprehensive content, expert
independent analysis and flexible delivery methods of IHS to make
high-impact decisions and develop strategies with speed and
confidence. IHS has been in business since 1959 and became a
publicly traded company on the New York Stock Exchange in 2005.
Headquartered in Englewood, Colorado, USA, IHS is committed to
sustainable, profitable growth and employs more than 8,000 people
in 31 countries around the world.
IHS is a registered trademark of IHS Inc. All other company and
product names may be trademarks of their respective owners. © 2014
IHS Inc. All rights reserved.
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20140609005178/en/
IHS Inc.News Media Contact:Michelle Culver, +1
248-728-7496michelle.culver@ihs.comorIHS Media Relations, +1
303-305-8021press@ihs.com
IHS (NYSE:IHS)
Historical Stock Chart
From Mar 2024 to Apr 2024
IHS (NYSE:IHS)
Historical Stock Chart
From Apr 2023 to Apr 2024