Despite limited supply and fewer cars being sold, auto industry revenue is way up.
In December 2021, the average buyer paid nearly $65,000 for a new luxury vehicle, whereas the average non-luxury vehicle cost about $43,000, per KBB. Average prices have soared particularly high for certain manufactures. For example, the average new vehicle transaction price across all makes from Tesla Motors and General Motors were 20% higher in December 2021 than a year prior.
In 2021, industry revenue reached $649 billion, which is nearly $100 billion higher than 2020 and more than 2019 revenue by nearly $2 billion.
“The rise in vehicle prices is offsetting the loss in sales volume,” Chesbrough said.
And that’s with nearly 2 million fewer vehicles sold in 2021 versus 2019, according to Cox Automotive data.