by Chase Samuels | Oct 29, 2019 | Infographics, Trade Analytics
The number of United States car imports has exponentially increased since the late 1950’s when cars first came across the ocean to the U.S.
Americans love and need their motor vehicles. Since the initial mass production of the automobile, the United States auto industry has grown to be a vital part of the economy. Because of this, cars have become one of the most imported items into the United States.
The History of the Automobile Industry in the United States
An increase in spending on car imports is directly linked to the development of the auto manufacturing industry and to the U.S. economy. So if we compare the monetary amount spent on importing cars into the United States with a timeline of important developments in the auto industry, we can begin to see the correlation between the two.
Below details some of the important events that have had an effect on the number of United States car imports.
- The U.S. automobile industry exploded after the end of the Second World War in 1945. With the creation of the highway system and a boom in the economy, Americans had the funds and a reason to purchase automobiles. Car owners could now drive cross-country in their own personal vehicles.
- During the ’50s and ’60s the first cars were imported into the U.S. and by the ’70s Japanese technology was importing more fuel-efficient cars than Americans.
- In the 1970s and ’80s, the car imports slowly grew as the demand for cars increased. Companies such as Toyota engineered higher quality cars which could be sold at a low cost. These cars became more popular when the price of gas in the U.S. spiked in 1973 and 1980. Eventually, the foreign competition led American producers to catch up with technology to remain competitive with foreign producers.
- Spending on car imports grew consistently every year during the ’80s and ’90s. Quickly, the imported car industry captured a large market share in the U.S. and in 1980 Japan became the world’s leading auto producer, this spot would later be taken back by the U.S. in 1993 and then China in 2009. Throughout these years, the vehicles became necessary for business and pleasure.
- Imports of automobiles increased consistently for many years until a sharp drop in the mid to late 2000s. The U.S. automobile crisis happened in 2008 and the demand for cars dropped drastically, major auto companies posted massive losses. The three biggest auto manufacturers in the U.S. needed government assistance to stay in business. Additionally, manufacturers in Asia were forced to cut production due to falling demand. Toyota experienced its first loss in over 70 years of operation. As seen in the graphic below, the automotive crisis hit the industry hard during these years.
- Despite international events, car imports recovered and quickly bounced back after 2010. Presently American automobile companies have plants across the world, in the U.S. and other partnering countries.
- This past year, $179 Billion worth of cars were imported into the United States.
History and Data Comparison of United States Car Imports
From the graphic, you can see that United States car imports have steadily grown since the 1960s. The one notable dip (which is considerably large) reflects the auto crisis (2008-2010).
Click the imagefor a downloadable PDF
The Current Market for Cars Imported into the United States
Presently, automobiles make up 8.3% of total imports into the U.S. and are the most imported commodity. In 2018, $179 billion worth of cars were imported into the U.S., the majority of these vehicles coming from China, Mexico, Japan, Canada, and Germany.
Currently, the imported automobile industry faces some big decisions to be made within 180 days of May 17, 2019. President Trump has threatened to impose a 25% tariff on all automobile and automobile parts imported into the United States. An investigation is currently underway to determine the effect of foreign auto manufacturers on the U.S. This threatens to completely change the industry, new car prices would rise and the number of cars manufactured in the U.S. would increase with the implementation of a 25% tariff.
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FAQs
But according to a Cars.com analysis, those imported vehicles still account for roughly 47% of all vehicles sold for 2023 — and if you're unfamiliar with the global automotive supply chain, it might catch you out to see certain names on such a list.
What country does the US import the most cars from? ›
In 2021, Mexico was the number one country of origin for U.S. light vehicle imports, with a value of almost 51.3 billion U.S. dollars. Japan and Canada were also leading countries of origin for U.S. imports. The Japanese brand Toyota was among the best-selling passenger car brands in the United States.
What impact did the car industry have on American economy? ›
Industry Growth
With the invention of the automobile and the mass production techniques of Henry Ford, which made the machine affordable, the American economy has been transformed by this key element in its prosperity. Tens of thousands of jobs were created as the industry grew.
How big is the car industry in the US? ›
Auto manufacturing drives more than $1 trillion into the economy each year through the sales and servicing of autos and flows through the economy, from revenue to parts suppliers to paychecks for assembly plant workers, from income for auto-related small business to revenue for government.
Does the US import more cars than it exports? ›
Overview In February 2024 United States' Cars exports accounted up to $4.6B and imports accounted up to $16.9B, resulting in a negative trade balance of $12.3B.
What country dominates the car market? ›
China is the largest car market in the world, accounting for over 23.6 million units sold in 2022.
Who is the largest US automotive exporter? ›
“Congratulations to BMW Manufacturing on being named the largest U.S. automotive exporter by value for the ninth consecutive year,” said SC Ports President and CEO Barbara Melvin. “For nearly 30 years, SC Ports has had a strong partnership with BMW Manufacturing.
What is the US largest import country? ›
The top five suppliers of U.S. goods imports in 2022 were: China ($536.3 billion), Mexico ($454.8 billion), Canada ($436.6 billion), Japan ($148.1 billion), and Germany ($146.6 billion).
What percent of the US economy is the auto industry? ›
The auto industry is one of the most important industries in the United States. It historically has contributed 3 – 3.5 percent to the overall Gross Domestic Product (GDP).
What car company employs the most American workers? ›
Ford employs the most UAW-represented hourly autoworkers in America. Ford employs more than 57,000 UAW-represented hourly autoworkers*, and almost 88,000 total workers in the U.S. alone. *Based on Q1 2024 employment data.
The automotive industry includes industries associated with the production, wholesaling, retailing, and maintenance of motor vehicles.
How many cars are imported to the US each year? ›
U.S. annual motor vehicle imports stayed on almost the same level between 2017 and 2019, amounting to nearly eight million units. In 2020, however, U.S. imports of motor vehicles dropped to some 6.5 million units.
Who has the largest market share in the car industry? ›
1. Maruti Suzuki | Market Share: 41.6% Collaborating with Suzuki Motor Corporation, a Japanese automobile manufacturer, Maruti Suzuki, a household name, holds a market share of 41.6% as of September 2023 and is the leading car manufacturer in India.
What percent of US cars are foreign? ›
On average, only 54.49 percent of cars on the road in the U.S. have an American make, while a full 45.51 percent hail from overseas.
What percent of US economy is imported? ›
As of 2022, imports of goods and services amounted to around 15.59 percent of U.S. gross domestic product. Imported goods include a wide variety of items including merchandise, raw materials, and supplies, including petroleum and related products.
What percentage of US produce is imported? ›
Between 2007 and 2021, the percent of U.S. fresh fruit and vegetable availability supplied by imports grew from 50 to 60 percent for fresh fruit and from 20 to 38 percent for fresh vegetables (excluding potatoes, sweet potatoes, and mushrooms).
Is the US a net exporter of cars? ›
In 2022, the top exporters of Cars were Germany ($149B), Japan ($89B), United States ($57.5B), South Korea ($52.1B), and Mexico ($48.4B). In 2022, the top importers of Cars were United States ($159B), Germany ($67.7B), China ($45.8B), United Kingdom ($40.3B), and France ($37.3B).
