Part 1/7:

The Changing Landscape of Automotive Demand: A Demographic Shift

The automotive industry is experiencing a seismic shift in demand driven by changing demographic factors, according to Mark Godfredson, a partner at Banan Company. The discussion with John Maroy delves into these critical trends that automakers need to heed to navigate the future effectively.

Understanding Structural Demand

Godfredson begins by defining structural demand, which is deeply influenced by four fundamental variables:

Population Growth: The demographic profile of the U.S. is evolving, significantly impacted by migration. In 2023, the U.S. welcomed approximately 3.9 million new immigrants, a factor largely overlooked by automakers forecasting future demand.