Insight

Automotive’s new reality: fewer trips, fewer miles, fewer cars?

Americans have gotten comfortable working from home and buying online. That means they’re driving less. Businesses need to take notice.

Gary Silberg

Gary Silberg

Partner, Deal Advisory, KPMG LLP

Bala Lakshman

Bala Lakshman

Managing Director, Strategy, KPMG US

+1 214-840-4005

Tom Mayor

Tom Mayor

National Strategy Leader, Industrial Mfg., KPMG US

+1 216-875-8061

Yoshi Suganuma

Yoshi Suganuma

Managing Director, Strategy, KPMG LLP

+1 212-872-7821

Jono Anderson

Jono Anderson

Principal, Strategy, KPMG US

+1 858-750-7330

Todd Dubner

Todd Dubner

Principal, Strategy, KPMG US

+1 212-954-7359

Americans love to drive—about 3 trillion miles in a year. But following the COVID-19 outbreak, social distancing measures drastically cut the number of miles driven by car, with many people suddenly working from home and relying on e-commerce.

We believe behavioral changes around commuting and e-commerce are here to stay and will continue to shape how Americans use automobiles. A continued near-term decline in driving will have a major impact on automakers and other players in the automotive sector, including a drop in vehicle sales, closing of assembly plants, a decline in gasoline consumption and gas taxes, and a drop in aftermarket parts sales, to name a few.