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Automotive Industry
The United States is the world's second largest market for vehicle sales and production.

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.

Industry Subsectors


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The United States has an extensive network of automotive parts suppliers serving the industry. In August 2024, this network directly supported over 580,000 U.S. jobs and inbound foreign direct investment supported 330,700 jobs in 2022. There were 4,640 establishments in this industry in 2022.

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Industry Factsheet

Explore the impact of foreign direct investment on U.S. jobs, exports, and innovation in the automotive industry.

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Investor Guide

The Investor Guide is a high-level view of everything from taxes to immigration and workforce to business structures.

See Investor Guide →
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SelectUSA Stats

SelectUSA has created several dashboards to help analyze key FDI data from a variety of sources.

See Dashboards →
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Industry Associations
A comprehensive list of associations in the automotive industry.
See Industry Associations
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Incentives
Browse this state incentives database developed by the Council for Community and Economic Research (C2ER).
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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

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