As supply-side challenges ease and post-Covid demand remains strong, the global new car sales market is set to maintain momentum, with S&P Global Mobility forecasting a figure as high as 88.3 million in 2024. Key markets, including China, the US, and Europe, are expected to contribute significantly to this surge, with positive signals for India, a crucial player in the global automotive landscape.
This marks an 8.8% increase from the sales figures of 2022, signalling a positive trajectory for the automotive industry despite ongoing challenges.
CHINA
China, the world’s largest vehicle market, is anticipated to continue its growth trajectory in 2024. S&P Global Mobility attributes this to persistent incentives on electric vehicles (EVs) and the increasing local production of vehicles. New Energy Vehicles (NEVs), including EVs and hybrids, are expected to witness a boost due to declining battery prices and components.
UNITED STATES
The US, the world’s second-largest vehicle market, is projected to see an addition of 15.9 million new cars in 2024, a modest increase from the estimated 15.5 million units in 2023. However, cautionary notes are sounded, citing concerns such as high interest rates, tight credit conditions, and slow-to-recede new vehicle prices.
EUROPE
Western and central European countries are poised to witness a significant year-on-year increase of 12.8%, reaching 14.7 million new car deliveries by the end of 2023. Improved production capacities and inventory recovery have supported manufacturers. Despite concerns including economic recession risks and tighter credit conditions, S&P Global Mobility anticipates around 15.1 million new car sales in 2024 for the region.
The global automotive industry looks forward to a prosperous 2024, buoyed by factors such as easing supply issues and sustained demand. Key markets are expected to drive this surge, showcasing the resilience of the automotive sector in navigating challenges and fostering growth on a global scale.
