SelectUSA Automotive Industry

Industry Overview

The United States has one of the largest automotive markets in the world. In 2024, the United States was the world’s second-largest market for vehicle production and sales. According to the International Organization of Motor Vehicles, in 2024, the United States produced 10.6 million motor vehicles and motor vehicle sales reached 16.3 million.

Foreign-owned automakers maintain a significant and growing presence in the United States. Over the past 30 years, foreign-owned automakers have nearly tripled their U.S. manufacturing facilities and boosted motor vehicle production in the United States by 145 percent. In 2024, foreign-owned automakers contributed to nearly half of all motor vehicle production in the United States.

The automotive industry supports substantial employment across the country. According to SelectUSA’s Cluster Mapping dashboard, SelectUSA’s interactive, and data-driven tool designed for investors, companies, and economic development organizations to identify industry concentrations across the United States at the state and county level, the automotive industry cluster employs more than one million individuals. Alabama, Indiana, Kentucky, Michigan, and Ohio have a high employment share and a high concentration of employees compared to the nation as a whole in the automotive industry cluster.

Beyond supporting employment, the automotive industry is also driving technological innovation and advancing manufacturing capabilities. In 2024, about 40 percent of all industrial robot installations were in the automotive industry. In 2023, the automotive industry invested nearly $33 billion in research and development (R&D) in the United States and U.S. affiliates of majority foreign-owned automotive companies spent almost $9 billion on R&D.  

These technological advancements and sustained investments not only strengthen domestic manufacturing but also enhance the industry’s global competitiveness. In 2024, the United States exported motor vehicles worth more than $87 billion and automotive parts worth more than $85 billion. With an open investment policy, a large consumer market, a highly skilled workforce, available infrastructure, and government incentives, the United States is expected to remain a leading market for the automotive industry.  

For information on foreign direct investment related to the automotive industry, please refer to SelectUSA’s Automotive industry factsheet.