SelectUSA Automotive Industry

Industry Overview

The United States has one of the largest automotive markets in the world. In 2022, new U.S. light vehicle sales were 11.5 million units. Overall, the United States is the world’s second-largest market for vehicle sales and production. According to Autos Drive America, international automakers produced 4.9 million vehicles in the United States in 2023.

In addition to automotive assembly plants, many automakers have U.S.-based engine and transmission plants and conduct R&D, design, and testing in the United States. The U.S. affiliates of majority foreign-owned automotive companies directly support more than 500,000 U.S. jobs. Total foreign direct investment in the U.S. automotive industry reached $195.6 billion in 2023.

The automotive industry is also at the forefront of innovation. New R&D initiatives are transforming the industry to better respond to the opportunities of the 21st century. U.S. affiliates of majority foreign-owned automotive companies spent over $7.9 billion in 2022 on R&D activities.

In 2023, the United States exported 1.6 million new light vehicles and over 160,000 medium and heavy trucks, with additional exports of automotive parts valued at $93.7 billion. With an open investment policy, a large consumer market, a highly skilled workforce, strong R&D capabilities, available infrastructure, and local and state government incentives, the United States is expected to remain a leading market for the 21st-century automotive industry.