US Car Market Set for Major Contraction by 2040
A Bain & Company analysis (cited by CNBC) predicts the U.S. car market will shrink significantly through 2040 as population growth stalls, fertility declines, and transportation behavior shifts toward ride-hailing and SUVs. High new-car prices and rising monthly payments, along with aging buyers and a shrinking share of younger buyers, are expected to drive consolidation among automakers and a reduction in small cars; AutoForecast Solutions also forecasts flat sales for several years, highlighting profitability pressures in the sector.