Picking up the pace

In the February 2024 issue of ISMR, we outline trends, challenges and opportunities in global automotive markets for manufacturers.

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According to a research report, "Global Automotive Industry Outlook 2024" by MarketsandMarkets, the global automotive sales is estimated to grow from over 91 million units in 2023 to cross 96 million units by 2024, at a steady year-on-year growth rate of 5-7%. This is backed by a strong recovery in commercial vehicles and the electrification trend in passenger cars.

“Despite persistent geopolitical tensions and economic uncertainties, the global automotive industry has exhibited robust growth throughout 2023. Overall, sales volumes in the automotive sector expanded by 10-15% during this period to cross 91 million units, with both the passenger vehicle and commercial vehicle segments experiencing commendable growth. The commercial vehicles segment demonstrated a growth of 18-20% in 2023 over the previous year,” said the report.

“Strong economic growth and an increase in infrastructure projects led commercial vehicle sales growth in Asia Pacific, particularly China and India. The electric passenger cars segment registered a growth of over 35% in 2023 compared to the previous year,” it continued.

Looking ahead

The report expects challenges such as geopolitical tensions, escalating commodity prices and increasing interest rates to impede markets in North America and Europe. Nonetheless, the Asia Pacific region is anticipated to surge forward, driven by the presence of major growing economies and sizable automotive markets, particularly in China and India.

“Within the passenger vehicle segment, SUVs have consistently demonstrated substantial growth across various regions in recent years, a trend that has persisted into 2023 and is expected to continue in 2024. Notably, China stands out as the dominant market in the passenger vehicle segment with other significant markets including the USA, India, Japan and Germany,” commented the analyst.

“Within the realm of passenger vehicles, prominent original equipment manufacturers (OEMs) include Toyota; GM; Stellantis; Honda; Volkswagen; Nissan; BMW; Daimler; Tesla and Ford. Tesla; BYD; Volkswagen; SAIC and Stellantis stand out as key players in the electric passenger vehicle sector. Shifting the focus to commercial vehicles in 2023, the leading OEMs encompass Mercedes-Benz; Tata Motors; Traton; Paccar; Volvo; IVECO; Ashok Leyland and Hino,” it added.

Key automotive developments in 2023

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