How foreign vehicles are impacting the vehicle mix

Foreign nameplate cars and light trucks have surged over the past decade, reshaping the vehicle mix and driving major changes in the aftermarket, according to a recent report.

According to Lang Marketing, between 2014 and 2019, the light vehicle population grew at an average annual rate of 1.9 per cent in the United States, fuelled by record-high new-vehicle sales following the 2008 recession. During that period, domestic nameplates added only two million vehicles, while foreign nameplates jumped by more than 24 million.

The trend accelerated from 2019 to 2024, despite a sluggish new-vehicle market caused by the COVID-19 pandemic. Foreign nameplates grew by over 22 million, topping 144 million vehicles, while domestic nameplates fell by more than five million. Over the past 10 years, foreign nameplates climbed by 37 million, while domestic vehicles dropped by four million.

As a result, domestic nameplates’ share of vehicles in operation fell from 58 per cent to less than half. Foreign nameplates rose from 42 per cent to nearly 51 per cent, growing at an annual rate of nearly 3 per cent, compared with a 0.3 per cent yearly decline for domestic brands.

“This unprecedented shift of more than 41 million cars and light trucks between foreign and domestic nameplates has significantly changed the U.S. vehicle mix, reshaping many segments of the aftermarket — and it will continue to do so for years to come,” Lang’s report said.

Foreign nameplate product sales grew by more than $28 billion at user price between 2014 and 2024, a 5 per cent annual increase. Domestic nameplate product sales fell by over $1 billion, declining at a 0.2 per cent yearly rate.

Lang Marketing says the changes are affecting four key areas: The volume of domestic and foreign nameplate products, the performance of five types of aftermarket brands, where products are sold and installed, and the market share of five distribution channels.