Motor vehicle sales grew by some 11.9 percent worldwide between 2022 and 2023. Passenger vehicles increased by around 11.3 percent compared to the previous year when some 58.6 million cars were sold worldwide. The current state of the market In 2023, motor vehicle sales reached over 92.7 million units worldwide. China was the largest automobile market worldwide, making up close to 25.8 million of the new car registrations that same year. The United States and Europe ranked second and third, with light vehicle sales reaching approximately 15.5 million units in the U.S. market. The German-based Volkswagen Group and Japanese Toyota Motor were the global leading automakers, with revenues reaching around 348.6 and 311.9 billion U.S. dollars respectively as of May 2024. The path to recovery The automotive chip shortage led to around 11.3 million vehicles being cut from worldwide production in 2021, and forecasts estimate that these disruptions in the automotive supply chain will contribute to the removal of another seven million units from production in 2022. However, despite these challenges, the demand for passenger cars increased in 2021 and 2022, as car sales slowly started to increase. This is partly due to consumers' interest in electric vehicles. Autonomous,electrified, and battery electric vehicles are also forecast to gain popularity in the next decades. Electrified vehicles are projected to make up close to a quarter of car sales worldwide by 2025. By 2040, China is forecast to be one of the largest market for autonomous vehicle sales.

Global new vehicle sales grew by 11.9 percent between 2022 and 2023. In detail, commercial vehicle sales increased by about 13.3 percent, while passenger car sales were up by 11.3 percent.

In 2024, the ranking of the world’s largest car brands was topped by Toyota with a market share of around **** percent. The Toyota brand is owned by Japan's Toyota Motor Corporation, the world's largest motor vehicle manufacturer. New trends in the auto industry In light of growing environmental awareness and increasing efforts to connect vehicles, automotive manufacturers are faced with a variety of new challenges. Market trends such as the shift to lighter materials, as well as the trend towards electric and autonomous vehicles are set to revolutionize the industry. Palo Alto-based Tesla Motors is currently among those at the vanguard of the trend towards electrification, along with the Chinese car manufacturer BYD. Tesla delivered nearly **** million vehicles in 2024, meaning that Volkswagen Group's sales tally is over **** times as much. The state of the global auto industry Car sales worldwide have dipped between 2019 and 2020 as a result of the economic downturn generated by the COVID-19 pandemic. 2021 sales recovered, despite remaining below 2019 levels, but supply chain shortages led to a slow recovery of sales in 2022. By the end of 2023, the global car sales volume had grown over pre-pandemic levels. China was the largest automobile market based on new passenger car registrations, recording close to **** million units sold. It was followed by the United States and Europe. China was also the leading passenger car producing country in 2023.

The U.S. auto industry sold nearly ************* cars in 2024. That year, total car and light truck sales were approximately ************ in the United States. U.S. vehicle sales peaked in 2016 at roughly ************ 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 ** 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 ** U.S. dollars per barrel. The decline occurred in tandem with lower gasoline prices, which came to about **** 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 ** million automobiles in 2024, up from around **** 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 ** 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 **** 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.

The global automotive manufacturing market was worth about **** trillion U.S. dollars in 2021. The market is projected to grow to some **** trillion U.S. dollars in 2022. This growth is a slow recovery, still under the industry’s 2019 market size. Automation and electrification drive market disruption Automotive technology will change considerably in the next decade. Some ** percent of new car sales globally are expected to be electric vehicles in 2030, and about *********** of new self-driving cars are projected to be added to the world’s fleet that year. New opportunities in the supplier segment Technological advancements begin to affect the type of parts that are required to complete the finished product. This allows for further segmentation in the auto supplier industry, particularly within the automotive electronics industry. The biggest changes to the automotive industry currently are automation and electrification. As autonomous and electric vehicles take over the market, electronic components, especially automotive semiconductors, will become even more important for automotive manufacturing.

In 2020, light vehicle sales worldwide declined by almost ** percent. By 2024, the market had increased well over pre-pandemic levels, despite supply chain issues, surges in automotive layoffs, and strikes in North America. In North America, around **** million light vehicles were sold in 2024. Light vehicle sales were to be around **** million units in the United States, North America's largest market, up from around **** million units one year earlier. Semiconductors Thrive Amidst the brewing tension brought forth due to the COVID-19 pandemic and global conflict, the semiconductor supply chain saw significant disruptions. Seemingly, one would expect that particular industry to have suffered greatly from such disruptions, but despite everything, global semiconductor industry revenue actually increased during 2020 and beyond, going from *** billion U.S. dollars in 2019 up to *** billion in 2022. In 2023, and even more so in 2024, the demand for semiconductors has surged, with companies like NVIDIA having nearly *** trillion U.S. dollars of market capitalization. Automotive Supply Global automotive suppliers, such as Bosch and Denso, suffered losses during the same period of instability in recent years, where the top 10 leading global automotive suppliers saw decreases in revenue from *** billion U.S. dollars in 2019 to *** billion dollars in 2020. These revenues bounced back in 2021 and beyond, reaching *** billion dollars in 2022. In particular, the earnings before interest and taxes (EBIT) margins of nearly every automotive supply segment have bounced back from the reported disruptions; this includes original equipment manufacturers, and software suppliers.

In 2023, the global passenger vehicle production reached some ** million units. Nearly ** percent of these vehicles were produced in China that year. Germany accounted for approximately five percent of the global production in 2023.

The Toyota Group remained the leading car manufacturer by sales in 2024, with a staggering **** 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 2024, 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 ** 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 2024 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 ** percent of the new car market.

At around **** percent, General Motors held the largest share of the auto market in the United States in 2024. General Motors remained the most successful automotive manufacturer in the United States. Between 2004 and 2021, however, the manufacturer lost market share, while that of Toyota rose as a result of an increased focus on light truck models in the lineup. This shifted in 2022, but 2023 led to another slight drop in market share of the American automaker. Asian manufacturers dominate non-domestic competition Among the non-domestic manufacturers, Asian automakers proved to be the most successful group. Asian car brands selling vehicles to customers in the United States include Toyota, Honda, Nissan, Hyundai, and Subaru. Toyota was also among the most valuable automotive brands worldwide as of June 2024. Both Toyota and Lexus were among the ten brands with the highest consumer satisfaction in the United States that same year. How many brands do auto manufacturers own? General Motors, Ford, and Toyota are the leading automotive manufacturers based on market share in the United States. The Ford Motor Company mainly sells vehicles under its namesake brand, while the Toyota Motor Corporation offers several brands, including Lexus and Toyota. General Motors sells vehicles under various brands, including Chevrolet, Buick, and GMC. In 2017, GM and PSA Group closed a deal in which the French carmaker acquired GM's Opel and Vauxhall brands.

Global vehicle sales have experienced significant fluctuations over the past two decades, with 2023 marking a return to pre-pandemic levels. The industry saw a sharp decline in 2020 due to the COVID-19 pandemic, followed by a gradual recovery. However, the semiconductor shortage in 2022 led to inventory issues and a slight decrease in sales. Despite these challenges, the market rebounded strongly in 2023, surpassing ** million units sold worldwide. Recovery and future outlook The automotive industry's resilience is evident in its rapid recovery from the pandemic-induced slump. Light vehicle sales are projected to increase by *** percent in 2024 compared to the previous year, with further growth of *** percent expected in 2025. This positive trend is supported by the rebounding sales in China, the world's largest automotive market, and the growing demand for electric vehicles. The global production of motor vehicles reached ** million units in 2023. Electric vehicles driving growth The shift towards electric vehicles is playing a crucial role in the industry's growth. In 2023, plug-in electric light vehicle sales reached an estimated **** million units globally. This surge in demand is particularly noticeable in China and Europe's largest markets. Despite the challenges posed by the pandemic and semiconductor shortages, the electric car market experienced record growth, with market share increasing significantly. However, as government subsidies for electric vehicles begin to be rolled back in some countries, the industry may face new challenges in maintaining this growth momentum.

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.

General Motors was the market leader in terms of U.S. light vehicle sales in 2024. Between January and December 2024, consumers in the United States bought around *** million GM vehicles, making General Motors the producer of approximately **** percent of the automobiles sold in the U.S. during that time.  Rebounding after a pandemic-related dip U.S. light-vehicle sales are stalling: the U.S. automotive industry sold roughly ***** million light vehicles between January and December 2024. This compares to about **** million units one year before and close to ** million vehicles in 2019. The trend is slightly different for America’s most popular manufacturer. GM’s global light vehicle sales declined in 2024, compared with the figures reported for the same twelve months in 2023. The U.S. automotive industry had several good years between 2015 and 2018, when consumers purchased more than ** million light vehicles annually for an unprecedented four years in a row. This stellar spell came to an end in 2019. Slowing economies and the COVID-19 pandemic had a strong negative effect on vehicle production and consumption. The U.S. auto market had high hopes for a V-shaped recovery in 2021 and 2022, but the reality was different. Light vehicle sales in North America dropped to **** million in 2022, after encouraging sales in 2021. The regional market was growing in 2024, but had yet to reach pre-pandemic levels. A competitive market The automobile market in the United States is a competitive space, with Toyota Motor trailing General Motors in the ranking. Chevrolet, a division of General Motors, recorded the second-best initial quality in the U.S. as of May 2024. It was preceded by Ram. Lexus, a subsidiary of Toyota, ranked eighth in this quality ranking but sixth in overall U.S. consumer satisfaction in 2024, with an index score ***** points above its main luxury car competitor, BMW. General Motors brands were at a similar position in the ranking, with the automaker's Cadillac brand earning the same index score as Lexus.

In 2023, the German automobile industry generated a revenue of around 564.2 billion euros. This was an increase compared to around 506 billion euros in 2022. Simultaneously, the number of employees in the industry has been decreasing in recent years.

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 terms of revenue, Toyota and Volkswagen were the leading automakers worldwide as of May 2024. In terms of vehicle sales, Toyota and Volkswagen are also counted among the most successful automakers worldwide. The emergence of China as an exceptional market Before the coronavirus crisis of 2019-2020, the global automotive industry was hit hard by the financial crisis of 2008-2009, and General Motors declared its roughly ** billion U.S. dollar bankruptcy following the crisis. In 2009, passenger car sales slumped in most markets, except for China, which emerged as the key sales market for passenger cars. The return of the crisis Chinese manufacturers cut the cord from their joint venture partners from other parts of Asia and the Western world a long time ago, and the global automotive industry has begun to feel the impact Chinese motor vehicles and parts manufacturers have. In 2020, the car market was in free-fall again. However, China was also affected this time. The global automotive chip shortage further impacted the industry in 2021 and 2022, leading to a slump in vehicle inventory despite rising demand. By 2023, some improvements were recorded on the global level.

In 2023, some 94 million motor vehicles were produced worldwide. This figure translates into an increase of around 10 percent compared with the previous year. China, Japan, and Germany were among the largest producers of cars and commercial vehicles.

China leads production

China is ranked as the largest passenger car manufacturer in the world, having produced more than 26 million cars in 2023, and accounting for almost one third of the world’s passenger vehicle production. Over the past decades, China has emerged as one of the main growth markets for players in the global automobile industry.

American manufacturers in China

One of China’s largest car manufacturing companies is the joint venture between General Motors and SAIC Motor Corporation Limited, known as Shanghai General Motors Company Ltd or simply Shanghai GM. GM produces and sells passenger vehicles under the Chevrolet and Cadillac brands, among others. Aside from manufacturing cars, the company also produces engines and transmission systems. Shanghai GM’s production amounted to a little over 1.3 million units in 2021.

Worldwide motor vehicle production amounted to more than 92.5 million units in 2024. Some 73 percent of the motor vehicle production was generated by the passenger cars segment, amounting to almost 67.7 million units. Chinese market recovery China is the world’s largest producer and consumer of passenger cars. This means that any change in production and sales in the Chinese automotive market will be noticeable in global figures. The Chinese economy has grown in tandem with vehicle production and sales. However, between 2016 and 2019, this growth slowed. Motorists in China have been unable to afford new cars due to lower employment levels and higher prices that came as a result of higher tariffs. Between December 2019 and March 2020, the economy was hit hard by the outbreak of the coronavirus pandemic. The automotive market cratered in February but rebounded soon thereafter. Chinese motorists purchased about 26 million passenger cars and more than four million commercial vehicles in 2023. COVID-19 and the motor vehicle industry The coronavirus outbreak brought many nations and their economies to a grinding halt in 2020. The effect on the motor vehicle industry was particularly noticeable. Many manufacturing facilities across the world were shut down to prevent the spreading of the virus. However, the industry has partially recovered since, showing an upward production output trend, which remains below the pre-pandemic levels.

China led the market for motor vehicle production in 2023, producing more than 30 million cars and commercial vehicles that year. This was even greater than the production values of the other top five countries combined. In comparison, vehicle production in the United States—the second-ranking country—amounted to approximately 10.6 million units, the majority of which were commercial vehicles.

The Worldwide Drop in Automotive Production The Covid-19 pandemic has caused many problems for the worldwide automotive sector. Since governments took rapid actions to slow down the spread of the virus—such as national lockdowns, large-scale social distancing, and stringent border controls—global motor vehicle production shrunk by 15 percent in 2020. Motor vehicle production declined in all regions, especially in Europe and Noth America, where the production value experienced a decrease of around 21 percent. Although, in 2022, the automotive industry was showing signs of recovery, the production volume of 2022 was still below the levels of the pre-pandemic years.

The Chinese Market Amid the COVID-19 Pandemic
China is a leading player in the global vehicle manufacturing industry, both in supply and demand. As of 2019, motor vehicle production in China accounted for nearly 29 percent of manufacturing operations worldwide. This figure reduced to 25 percent during 2020 when the COVID-19 pandemic disrupted the global supply chain and most industries. On a closer look, China's leading motor vehicle producer SAIC-General Motors slimmed down production numbers by 13 percent year-on-year. Meanwhile, another joint venture between SAIC and Volkswagen manufactured approximately 22.4 percent fewer cars than the previous year. In 2022, China's share increased again and reached almost 32 percent of the global production.

China is the world's largest automotive market: Chinese motorists purchased around **** million passenger cars in 2024. 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 **** million vehicles being removed from production worldwide. Short-range outlook Worldwide light vehicle sales are projected to increase by *** percent in 2025. Several factors could lead to a downturn in sales - among them, the potential tariffs on automotive products put in place by the Trump Administration in the United States, North America's largest car market. 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.