Global Automobile Market 2024

In 2023, global car sales hit a record high. Figure 1 illustrates the number of new cars registered worldwide from 2016 to 2023. Last year, approximately 72.5 million new cars were registered, with the United States and China accounting for 15% and 31% of these registrations, respectively. This marks a significant rebound in car sales, which had been at a three-year low.

Figure 1 Nr. Of new cars registered in 2017-2023 in the largest car markets

Source: The European Automobile Manufacturers’ Association (ACEA)

Worldwide sales of new cars increased by 9.7% in the past year (Figure 2), largely due to improvements in the supply chain. This growth was primarily driven by robust recoveries in Europe, North America, and Asia.

Figure 2 The growth of new cars registered

Source: The European Automobile Manufacturers’ Association (ACEA)

The substantial growth observed in 2023 is unlikely to continue into 2024, primarily due to the rising costs of raw materials and elevated interest rates. Consequently, a more moderate growth rate is anticipated, with electric vehicles expected to be the main drivers of this expansion.

Table 1 shows the number of cars sold by country in 2023. The last three columns indicate the brand, units sold, and the corresponding market share for the top-selling car brand in each country. Notably, the top 10 countries accounted for over 80% of total global car sales. 

Table 1 Sold cars by country in 2023

Source: https://www.factorywarrantylist.com/car-sales-by-country.html;

Note: The metric for sold units in China has been revised to the sales volume of passenger cars, as reported by the China Association of Automobile Manufacturers (CAAM).

In 2023, Toyota maintained its position as the leading automaker globally. Suzuki also achieved an impressive market share of 43.7% in India, despite the country's large vehicle market. Domestic manufacturers, such as Toyota in Japan and Hyundai in South Korea, captured significant market shares in their respective countries. This dominance poses a challenge for other foreign automakers looking to expand into the electric vehicle (EV) markets in Japan and South Korea, especially as Toyota and Hyundai intensify their competitiveness in the EV sector.

Electric Cars -   European Market

Electric cars include battery electric vehicles (BEVs), Plug-in electric vehicles (PHEVs) and hybrid electric vehicles (HEVs). Table 2 illustrates the evolution of electric car sales in selected countries, where the penetration rate reaches as high as 50%. Norway continues to lead with an impressive 96% penetration rate. The upward trend in electric car sales is expected to persist.

Table 2 Market share of electric cars in the local countries

Source: The European Automobile Manufacturers’ Association (ACEA)

Except for Germany, Denmark, France, Sweden, the UK, and Norway all have electric car penetration rates higher than the combined average for the EU, EFTA, and the UK. In 2023, 6.4 million electric cars were sold within these regions.

Figure 3 displays the market shares of electric cars in the aforementioned countries.

Figure 3 Distribution of new electric cars registered by country 2023

Source: The European Automobile Manufacturers’ Association (ACEA)

Among European countries, Norway has been the most proactive in promoting in the EV market. Table 3 display the sales of battery electric vehicles (BEVs).

Table 3 Sold battery electric vehicles (BEVs) in 2017-2023

Source: The European Automobile Manufacturers’ Association (ACEA)

In 2023, sales of battery electric vehicles (BEVs) across European countries reached 2 million units, as shown in Table 3. The growth rate remained stable at around 28% from the previous year. However, sales of BEVs in Norway declined, even though the penetration rate of BEVs increased to 82% from 79%. This reduction in total car sales, which fell by 27%, can be attributed to the elimination of tax benefits for EVs in Norway.

Electric Cars  -   American Market

Table 4 presents the sales volumes of EVs and hybrids in the U.S. for 2023. In this context, 'EVs' specifically refers to battery electric vehicles, while 'hybrids' includes plug-in hybrids. Sales reached nearly 1.2 million for EVs and 1.4 million for hybrids. It is noted that these figures might include commercial vehicles, as the source does not specify the type of vehicles counted. Typically, passenger cars constitute the majority of EV and hybrid sales. Assuming Table 4  exclusively covers cars, the penetration rates for EVs and hybrids are approximately 9.6% and 11%, respectively. These figures lag significantly behind those of Europe and China.

Table 4 Total EVs and hybrids sold in the U.S. 2017-2023

Source: https://www.cnbc.com/2024/03/13/ev-euphoria-is-dead-automakers-trumpet-consumer-choice-in-us.html

 Cox Automotive /KBB estimates

New Energy Cars -   Chinese Market

In China, the term 'New Energy Vehicles' (NEVs) encompasses battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell electric vehicles (FCEVs). Of these, FCEVs hold a minimal market share, with only 6,000 units sold in 2023. Overall, NEV sales reached 9.495 million in 2023, with passenger cars accounting for 95% of these sales.

Further details are provided in the section on the Chinese market.