Pandemic accelerated age of vehicles. Vehicles in operation declines.
New research from IHS Markit (NYSE:INFO) shows that the average age of light vehicles in operation (VIO) in the U.S. has risen to 12.1 years this year, increasing by nearly 2 months during 2020 and elevated by the COVID-19 pandemic. The increase in average age will further drive vehicle maintenance opportunities from an increasingly aged vehicle fleet.
COVID-19 and its impact across the U.S. caused a drastic reduction in new vehicle sales as well as a sudden increase in vehicle scrappage, which was a catalyst for increased velocity in the growth