Auto sales boom in second half of 2020

What’s Happening

When the COVID-19 shutdowns hit the U.S. early this year, both analysts and automakers alike understandably expected the major drops in auto sales to last all year — but reality has not turned out that way. A short segment from NPR highlights that the late summer months proved especially profitable for companies like GM, Ford, and Fiat Chrysler, with Fiat Chrysler seeing record sales. Analysts attribute this boom in sales to pent up demand from earlier in the year. Car sales among millennials may be due to increased appeal for traveling in cars for vacations, hiking, and outdoor activities. Many automakers, like GM and others, have announced plans to use these profits to invest in their electric vehicle design and manufacturing infrastructure.

Here’s Our Take

Early in the pandemic, as many countries implemented mandatory quarantines and people traveled less, we saw a reduction in the carbon emissions worldwide, which was seen as a silver lining. However, these climate benefits were short-lived. As car sales rebound faster than predicted, transportation emissions are increasing. In a UC Davis ITS survey from August, researchers found that nearly 37% of respondents reported using buses and public transport less often compared to last year, with an overall net reduction in traveling. These results are understandable given the concerns over sharing space, but nevertheless, a reduction in public modes of transport undermines the pursuit of sustainable mobility. Transit continues to lag behind the renewed surge in car use. A huge sales rebound in vehicles like we’re seeing during the coronavirus pandemic underscores the necessity for clean transportation policy–to enhance shared travel and accelerate the sales of zero emission vehicles.