The U.S. auto industry sold nearly three million cars in 2024. That year, total car and light truck sales were approximately 15.9 million in the United States. U.S. vehicle sales peaked in 2016 at roughly 17.5 million units. Pandemic impact The COVID-19 pandemic deeply impacted the U.S. automotive market, accelerating the global automotive semiconductor shortage and leading to a drop in demand during the first months of 2020. However, as demand rebounded, new vehicle supply could not keep up with the market. U.S. inventory-to-sales ratio dropped to its lowest point in February 2022, as Russia's war on Ukraine lead to gasoline price hikes. During that same period, inflation also impacted new and used car prices, pricing many U.S. consumers out of a market with increasingly lower car stocks. Focus on fuel economy The U.S. auto industry had one of its worst years in 1982 when customers were beginning to feel the effects of the 1973 oil crisis and the energy crisis of 1979. Since light trucks would often be considered less fuel-efficient, cars accounted for about 77 percent of light vehicle sales back then. Thanks to improved fuel economy for light trucks and cheaper gas prices, this picture had completely changed in 2020. That year, prices for Brent oil dropped to just over 40 U.S. dollars per barrel. The decline occurred in tandem with lower gasoline prices, which came to about 2.17 U.S. dollars per gallon in 2020 - and cars only accounted for less than one-fourth of light vehicle sales that year. Four years on, prices are dropping again, after being the highest on record since 1990 in 2022.

Worldwide car sales grew to around 78 million automobiles in 2024, up from around 75.3 million units in 2023. Throughout 2020 and 2021, the sector experienced a downward trend on the back of a slowing global economy, while COVID-19 and the Russian war on Ukraine contributed to shortages in the automotive semiconductor industry and further supply chain disruptions in 2022. Despite these challenges, 2023 and 2024 sales surpassed pre-pandemic levels and are forecast to keep rising through 2025. Covid-19 hits car demand It had been estimated pre-pandemic that international car sales were on track to reach 80 million. While 2023 sales are still far away from that goal, this was the first year were car sales exceeded pre-pandemic values. The automotive market faced various challenges in 2023, including supply shortages, automotive layoffs, and strikes in North America. However, despite these hurdles, the North American market was among the fastest-growing regions in 2024, along with Eastern Europe and Asia, as auto sales in these regions increased year-on-year. Chinese market recovers After years of double-digit growth, China's economy began to lose steam in 2022, and recovery has been slow through 2023. China was the largest automobile market based on sales with around 25.8 million units in 2023. However, monthly car sales in China were in free-fall in April 2022 partly due to shortages, fears over a looming recession, and the country grappling with the COVID-19 pandemic. By June of that same year, monthly sales in China were closer to those recorded in 2021.

In 2024, the auto industry in the United States sold approximately 15.9 million light vehicle units. This figure includes retail sales of about three million passenger cars and just under 12.9 million light trucks. Lower fuel consumption There are many kinds of light vehicles available in the United States. Light-duty vehicles are popular for their utility and improved fuel economy, making them an ideal choice for savvy consumers. As of Model Year 2023, the light vehicle manufacturer with the best overall miles per gallon was Kia, with one gallon of gas allowing for 30.4 miles on the road. Higher brand satisfaction When asked about light vehicle satisfaction, consumers in the United States were most satisfied with Toyota, Subaru, Tesla, and Mercedes-Benz models. Another survey conducted in 2018 and quizzing respondents on their stance regarding the leading car brands indicated that Lexus was among the most dependable brands based on the number of problems reported per 100 vehicles.

In 2022, U.S. auto shoppers bought approximately 2.86 million autos. Meanwhile, light trucks accounted for more than 79 percent of light vehicles sold to individual customers and corporate fleets in the United States.

At around 948,000 unit sales, light trucks remained the largest U.S. auto market segment in September 2024, down from around 1.2 unit sales in October 2024 and decreasing by approximately 11.2 percent year-on-year. Global chip shortage affects supply The second quarter of 2020 saw a significant drop in automotive sales volume compared to the year before. Most of the disruption was seen in May, before restrictions to curtail the coronavirus pandemic were lifted. Sales showed signs of recovery in the following months, before dropping again in 2021. The industry's inventory-to-sales ratio nosedived in May 2020, and has not fully recovered since. Supply issues were not felt as strongly across the automotive sector, while car demand was low due to national lockdowns brought on by the pandemic. However, as consumers' purchasing intentions picked up, vehicle stocks could not meet the new demand due to chip shortages, which led to production halts and cuts. U.S. vehicle sales gain momentum thanks to light truck sales As the year 2020 came to an end, motor vehicle sales in the United States finished on a high note. Following the Covid-19 disruption, the U.S. auto sector began to recover in the third quarter. However, the semiconductor shortage and global inflation further impacted sales in 2021 and 2022. In contrast, 2023 was an encouraging year. U.S. motor vehicle sales grew to over 15.5 million that year, which was the highest it had been since the onset of the pandemic. This jump in sales was partly due to light truck retail sales, which exceeded their pre-pandemic level in 2023.

In 2018, about 511,500 cars were sold in Florida, making it the second best performing state in terms of car sales. Car sales are losing popularity in the United States with more motorists preferring other segments such as small trucks, SUVs, and minivans. Overall, some 1.3 million light vehicles were sold to customers in Florida in 2018. California dominates traditional and electric car sales California is not only the largest market for cars but also for plug-in electric vehicles. The state is known for progressive state legislation that promotes the manufacturing and sale of electric vehicles. It is also the home to the Tesla headquarters. The company is behind much of the growth of electric vehicles in the United States. Over 4.7 percent of California’s new vehicle sales in 2018 were electric vehicles. The Californian electric vehicle fleet is expected to surpass three million vehicles by 2030. With so many electric vehicles on the road, heavy investments must be made into electric vehicle infrastructure. An extensive network of charging stations has been set up along highways between Mexico and Canada. The ‘West Coast Green Highway’ consists of hundreds of fast chargers in California, Oregon, and Washington. Pacific Coast states accounted for over half of all U.S. electric vehicle sales in 2018.

The Asia-Oceania and the Middle East region was the world's largest market for passenger and commercial vehicles, with sales amounting to nearly 44.6 million units in 2022. The region dwarfed all other markets, with China representing more than half of the regional sales that year. China leads the way in the electrification of the market
The Asia-Oceania and the Middle East market was dominated by automobile sales. Passenger car sales contributed to 84.14 percent of the sales in the region in 2022, and were also the leading motor vehicle segment worldwide in that same year. China, the main market in the region, led the way in the electric mobility sector. In 2022, it is estimated that over 14.1 million plug-in electric vehicles were in use in the country, with sales of this type of vehicles reaching an all-time high in that same year. The electric vehicle market worldwide is tipped to reach revenues over 770.03 billion U.S. dollars by 2028.
Leading automakers in close competition
Globally, Volkswagen Group and Toyota Motor are the leading carmakers in terms of revenue. The Japanese auto giant generated almost 37.15 trillion Japanese yen in revenue in its 2023 fiscal year. The U.S.-based Tesla has also recorded a steep growth throughout 2022, as the brand with the highest brand value growth worldwide across sectors. Tesla was the second market leader in plug-in electric vehicle sales, with worldwide market shares close to 13 percent in 2022. The brand was however edged out by China-based BYD, which surpassed Tesla due to its large sales volume of plug-in hybrid electric vehicles.

Between January and December 2024, General Motors was the leading automotive manufacturer based on sales in the United States. The Detroit company sold nearly 2.7 million passenger cars and light trucks in the U.S., which was around 10,000 more vehicles compared with the same time period one year earlier. Most other manufacturers also recorded an increase in sales in 2024 as they rebounded from the impact of the semiconductor shortage. Tesla, in contrast, reported a year-over-year decrease in sales volume. Electric sales continue growth In 2023, electric vehicles have fared better than conventional vehicles so far. Tesla’s vehicle sales are indicative of this trend on a global level, despite a slight decrease in U.S. sales. Tesla's worldwide deliveries broke records in 2023. However, competition is beginning to gain momentum, and manufacturers such as General Motors are continuing to add new electric vehicle models into their range of vehicles offered. Newcomers such as the Lucid Group and Karma Automotive are also gaining speed, with the Lucid Air Dream Edition Range being the electric vehicle from Model Year 2023 with the longest range. Vehicle market trends stabilize Annual retail sales of new light vehicles in the United States peaked in 2016, when the industry sold over three million units more than in 2020. The declining trend took place during a period of stagnation in the global automotive market, which saw light vehicle sales decline by around 14.4 percent between 2019 and 2020. Though 2023 recorded an uptick in light vehicle sales, this volume remained below pre-pandemic levels. During the 2020 coronavirus pandemic, transport modes that minimize contact with other people have become more attractive. U.S. vehicle sales have been relatively stable across 2022, and had started to grow in 2023.

Being one of the largest automotive sectors, India had over 326 million registered vehicles as of financial year 2020. It was the largest producer of two-wheelers across the globe in 2023. The market within the country was also dominated by this segment. In financial year 2024, over 17.97 million units of two-wheelers were sold domestically across the south Asian country. A decline in the sales volume of two-wheelers has been witnessed between 2020 and 2022. Hero MotoCorpHero MotoCorp had the maximum share in the two-wheeler segment in India. The company was the worldwide leader in two-wheeler manufacturing. The company has taken up the initiative of manufacturing electric scooters and bikes. To reduce the high battery costs that create a significant cost difference between the petrol and the battery variants, the Indian government has introduced the National Programme on Advanced Chemistry Cell (ACC) in 2022 to inventivize batery manufacturing. Two-wheeler market outlookThe Indian government has set a target to electrify a major proportion of the two-wheelers within the nation. However, the manufacturers have encouraged the government to adopt more ‘realistic’ expectations, as the former’s scheme would mean the electrification of over two million vehicles. With the two-wheeler industry estimated to grow at over nine percent in the next few years, more investments in the clean energy sector could pave a way for the domestic market.

Global passenger car sales reached 65.3 million units in 2023, marking a significant 11.3 percent increase from the previous year. This rebound in the automotive market comes after several years of fluctuations, including a sharp decline in 2020 due to the COVID-19 pandemic. China maintained its position as the world's largest regional market for automobiles, with sales of nearly 26.1 million units in 2023. European market dynamics and electrification trends In the European Union, Volkswagen emerged as the top-selling brand in 2024. The shift towards electrified vehicles gained momentum. This trend is driven by policies such as the EU's ban on new fossil-fuel car sales from 2035. Norway, despite experiencing a sluggish increase in overall passenger car sales, maintained its leadership in electric vehicle adoption. Global industry leaders and market challenges Toyota and Volkswagen continue to dominate the global automotive industry in terms of revenue and vehicle sales. The industry has faced significant challenges in recent years, including the global automotive chip shortage and raw material price increases. China has emerged as a key player, both as a major market and as a source of competition for established manufacturers. The trend towards electric and autonomous vehicles is reshaping the industry, with companies like Tesla delivering 1.81 million vehicles in 2023, though still far behind traditional automakers like Volkswagen Group.

Sales of used light vehicles in the United States came to around 38.9 million units in the third quarter of 2024. The same period, approximately 15.6 million new light trucks and automobiles were sold here. Declining availability of vehicles In the fourth quarter of 2023, about 288.5 million vehicles were in operation in the United States, an increase of under one percent year-over-year. The rising demand for vehicles paired with an overall price inflation lead to a rise in new vehicle prices. In contrast, used vehicle prices slightly decreased. E-commerce: a solution for the bumpy road ahead? Financial reports have revealed how the outbreak of the coronavirus pandemic has triggered a shift in vehicle-buying behavior. With many consumer goods and services now bought online due to COVID-19, the automobile industry has also started to digitally integrate its services online to reach consumers with a preference for contactless test driving amid the global crisis. Several dealers and automobile companies had already begun to tap into online car sales before the pandemic, some of them being Carvana and Tesla.

In 2024, from January to September, Indonesia had the highest number of motor vehicle sales among Southeast Asian countries, with over 784 thousand vehicles sold. During the same period, more than 731 thousand motor vehicles were sold in Malaysia. The landscape of the ASEAN automotive industry While Indonesia leads in domestic sales of motor vehicles, Thailand emerged as the production powerhouse in Southeast Asia, manufacturing over 1.83 million motor vehicles in 2023. Its production capacity reinforces Thailand’s position as the leading exporter of passenger cars in Southeast Asia and the fourth-largest exporter in the Asia-Pacific region, only behind Japan, China, and South Korea. Notably, in 2023, the Philippines saw the highest year-on-year growth in motor vehicle sales in Southeast Asia, followed by Malaysia, while both Indonesia and Thailand experienced a decline. Southeast Asia’s local brand - VinFast Unlike most Southeast Asian manufacturers, which produce vehicles in partnership with global automotive brands, Vietnam’s first automobile maker VinFast emerged as a unique player in the region’s automotive market. Founded in 2017 by Vingroup conglomerate, VinFast originally debuted with gasoline-powered vehicles, yet quickly pivoted toward electric vehicles. VinFast’s revenue reached over 28.7 trillion Vietnamese dong (about 1.2 billion U.S. dollars) in 2023, nearly double the revenue in 2022. While most of its revenue comes from the domestic market, VinFast has established its presence in Canada and the U.S. and plans further expansion into European markets. The company has contributed significantly to transforming Vietnam’s automotive industry, as well as to the country’s transition to greener mobility.

Crossovers are Americans’ favorite type of passenger vehicle. This category accounts for over 45 percent of automobile sales in the United States as of June 2022. The most popular models include Honda’s CR-V, Nissan’s Rogue, and Toyota’s RAV4. In the first quarter of 2022, U.S. auto buyers bought just under 101,200 units of Toyota’s RAV4 model, making it the best-selling vehicle in this category.

Toyota is the market leader  

The RAV4 was one of the very first specimens of its kind, as production of this model began in 1994. Toyota was the second most valuable automotive manufacturer worldwide in 2022, with a brand value of just over 33.1 billion dollars. It followed Tesla, which was first in the ranking with a gap of over 42 billion dollars compared to the runner-up. Toyota’s net revenue rose to 31.4 trillion Japanese yen in 2022 (around 257 billion U.S. dollars as of March 2022 exchange rates), a visible growth of over 15 percent compared to 2021, despite the manufacturer being impacted by the global automotive chip shortage.

 Crossovers benefit from the shift away from sedans   Crossover SUVs (sport utility vehicles) combine the fuel efficiency levels of compact and midsized cars and the higher seating positions of light trucks. They gained in popularity when fuel prices were low and, consequently, automakers increased production volumes and model additions of this vehicle type. Between 2014 and 2021, U.S. car sales fell from over 7.7 million to around 3.34 million units. Concurrently, light truck sales increased from 8.7 million units in 2014 to close to 11.6 million units in 2021. The impact of the COVID-19 pandemic on vehicle demand led to a 9.6 percent drop in light truck sales in 2020. This drop in vehicle sales impacted countries across the globe. In 2020, Germany recorded a loss of over 140,000 sales of SUVs compared to 2019, whereas China’s new SUV registrations remained stable between the two years.

In terms of monthly light vehicle sales in the United States, Toyota was the top brand in December 2023 with Ford and Chevrolet in second and third place. Customers in the U.S. bought nearly 182,500 Toyota-badged vehicles in December 2023. What was the effect of the pandemic on sales? U.S. vehicle sales tanked in March 2020 but bounced back soon thereafter. Due to the global chip shortage, sales fell again through 2021 and 2022. U.S. auto dealers sold around 1.27 million light vehicles in December 2022, an increase of 5.39 percent year-on-year. These figures can be seen as a consequence of the dwindling supply while automakers halted manufacturing due to a lack of semiconductors for vehicle production. Raw material price inflation and the cost of living crisis recorded in 2022 had also impacted the supply and demand for new vehicles. Pre-crisis plateau Slightly under 14.5 million light vehicles were sold to U.S. auto dealers in 2020. Retail sales are estimated to have slowly recovered in 2021, falling short of the 15 million mark. New sales of light vehicles remained relatively flat between 2017 and 2019 albeit on a high level. 2019 car and light truck retail sales of just under 17 million units put the industry’s new light retail sales figures 1.4 percent lower in 2019 than in 2018. It was particularly passenger cars that did not move off the shelves easily, as light truck sales reached a peak in 2019. Passenger cars now only represented less than one-third of all light vehicle sales in the U.S. While the market recovered through 2023, passenger cars remained the less popular alternative to the larger light trucks for U.S. consumers.

China is the world's largest automotive market: Chinese motorists purchased around 26.06 million passenger cars in 2023. India was the second-largest market for passenger cars in Asia. Hit by the pandemic
The global automotive industry was severely affected by the coronavirus pandemic in 2020. Seemingly led by pent-up demand for cars when lockdowns were lifted, vehicle sales in the U.S. and other large markets worldwide have been showing signs of improvement since the third quarter of 2020. However, this was not enough to offset a decline in global car sales by the end of 2020. According to the source, passenger cars are motor vehicles with at least four wheels, used for the transport of passengers, and comprising no more than eight seats in addition to the driver's seat. Global car sales declined overall in 2020. The global automotive semiconductor shortage further impacted vehicle inventory in 2021 and 2022, as supply chain disruptions led to 11.3 million vehicles being removed from production worldwide. Short-range outlook
Worldwide light vehicle sales are projected to increase by 2.6 percent in 2024. Several factors could lead to a downturn in sales - among them, price inflation and raw material shortages due to Russia's war on Ukraine. Additionally, the steady rise in autonomous and electric vehicle sales and related changes in the supply chain are likely to affect the industry in the next years.

The Toyota Group remained the leading car manufacturer by sales in 2023, with a staggering 10.8 million vehicles sold globally. This achievement solidifies Toyota's position as a dominant force in the automotive industry, reflecting its ability to maintain a strong market presence. Mercedes-Benz Cars' remarkable performance in China In 2023, Mercedes-Benz Cars experienced remarkable success in China, surpassing its European sales and accounting for over a third of its global sales. This shift highlights the evolving dynamics of the global automotive market and the increasing significance of the Chinese market for car manufacturers, including those in the luxury segment. In 2023, China was the largest automobile market, recording over 10 million sales more than those in the United States, which was second in the ranking. Toyota's ongoing rivalry with Volkswagen The rivalry between the Toyota Motor Corporation and Volkswagen Group for the top spot in the global automotive industry remains intense, with both manufacturers consistently vying for dominance. Toyota Motor Corporation's 2023 sales figures reaffirm its competitive position, signaling a continued battle for market leadership between these automotive giants. That year, Toyota Motor Corporation’s eponymous brand was the global best-seller, holding nearly 11 percent of the new car market.

Light vehicle sales in the United States are anticipated to slowly grow in 2022, despite the impact of the Russian invasion of Ukraine on automakers. U.S. light vehicle sales are projected to reach some 15.2 million units in 2022, while it is expected that the auto industry in Europe will sell about 16.1 million units that same year. Chinese light vehicle sales are projected to rise to just under 24.2 million units in 2022.

In 2022, around 1.94 million motor vehicles were sold in the United Kingdom, down from its peak at around 3.1 million units in 2016. This figure represents a decrease of 5.1 percent year-on-year. Sales recovery does not match 2019 levels In 2022, the UK overtook France as the second-largest car market in Europe, a position it had lost since 2019. New passenger car registrations had grown in the country in 2023, up to the highest volume recorded since their dramatic drop in 2020. However, amid Brexit, the automotive semiconductor shortage, raw material price inflation, and an overall cost of living crisis, the UK's automotive industry has faced various challenges and has yet to reach its pre-COVID-19 pandemic level. The impact of inflation on car purchases The United Kingdom recorded its highest inflation rate since the 1990s in 2022, a situation which marginally improved in 2023. New cars were particularly impacted by the inflation, with their consumer price index being at its highest in the past fifteen years in 2023. Despite the inflating prices, car purchasing intentions remained relatively stable based on surveys ending in September 2023 and September 2024, with around half of UK residents reporting their intention of buying a car in the 12 months following the survey. This is, however, a positive development compared to purchase intentions reported in that same survey ending in September 2022.

At about 23.56 million units, China remained the largest market for passenger car sales in 2022. According to the source, passenger cars are motor vehicles with at least four wheels, used for the transport of passengers, and comprising no more than eight seats in addition to the driver's seat. Hence, the figures do not include light trucks.

Pandemic causes sales slump across all markets

Worldwide, passenger car sales have been slowly increasing. Car sales started falling dramatically during the 2008-2009 economic crisis and re-entered a sales slump at the end of 2018. Sales slumped in 2020 due to the outbreak of Covid-19 and related measures to curb the spread of the coronavirus. However, despite the impact of the semiconductor chip shortage on vehicle production, global car sales have slowly increased in 2021 and 2022. This growth is however still behind the sales volume recorded in 2019, before the onset of the pandemic. Spotlight on the largest markets
In Europe, about 75 percent of new passenger car registrations occur in the largest markets, which include Germany, France, the United Kingdom, Italy, and Spain. Despite a slowdown in demand in 2020, China has seen the largest increases in passenger vehicle sales between 2005 and 2020, growing from 3.97 million units to some 20 million units. During this time period, leading original equipment manufacturers (OEMs) like General Motors or Volkswagen enjoyed rising sales trends not just in China, but across all Asian markets. China, Japan, Germany, India, and the United States are ranked among the world’s largest car markets. These countries are home to many of the major motor vehicle manufacturers, including theworld’s largest automakers in 2022.

In 2023, approximately 26 million passenger cars and four million commercial vehicles had been sold in China. Passenger vehicle sales regained growth in 2021 after three consecutive years of decline. Vehicles sales The automobile industry has been a major driving force in China’s economic momentum and, despite slowing growth, expected to continue fueling the economy. China was the world’s leading car producing country in 2023, producing approximately 26 million passenger cars and claiming a third of total global vehicle production. However, while passenger car sales in China have been skyrocketing since 2008, they have slowed somewhat since 2017. Type of vehicles During the slowdown in the vehicle sales in China, the sale of minivans, multipurpose vehicles (MPV) and sedans have slowed, but the number of SUVs sold has increased in the same year, although all sales for passenger cars started decreasing since 2017. While the gas guzzling SUV is the most popular type of passenger car in China, the production of new energy vehicles is also on the rise since the government has been promoting their use. The export value of electric passenger vehicles from China surged in recent years.