The auto industry has been affected by macroeconomic challenges, chip shortages, and supply chain disruptions. Moreover, high inflation has put pressure on prospective car buyers’ pockets, and rising interest rates made borrowing costly. U.S. new vehicle sales declined 4% sequentially in November.
Despite the near-term uncertainties, the motor vehicle industry is expected to witness growth driven by a rise in consumer spending and the rapid switch to electric vehicles (EVs). Also, the CHIPS and Science Act is expected to boost the manufacturing capabilities of automakers by helping them rely less on foreign chip supplies.
