Navigating Change: A Comprehensive Review of the Global Automobile Industry's Evolution and Future Prospects - Edition 2023

Source:
Makreo Research
Mumbai, August 28, 2023

The global automobile sector experienced a significant contraction of approximately 5%, with the production of cars, trucks, and buses dropping to below 92.2 million units. This decline marked the conclusion of a ten-year period of expansion, primarily driven by the unforeseen consequences of the COVID-19 pandemic.

► 2021: Modest Growth in Vehicle Manufacturing
In 2021, worldwide motor vehicle manufacturing reached a total of 79.1 million units, indicating a modest growth of 1.3% compared to the previous year. Notably, within the passenger car category, vehicle production saw a 2% increase in 2021 compared to 2020.

► Regional Variances in Production
Regionally, the Asia-Pacific region reported a substantial production increase of 7%, while Africa observed an 8% upswing. In contrast, North America and Europe experienced declines of 10% and 7%, respectively, in passenger car production throughout 2021. China maintained its lead as the foremost manufacturer in the global automobile production landscape, contributing 33% of the overall output, followed by Europe (21%), and Japan and Korea (16%).

► Global Semiconductor Chip Shortage
The global shortage of semiconductor chips originated in 2020 due to lockdowns imposed by governments, disrupting manufacturing and supply chains. The situation worsened in early 2021 due to factors such as a US manufacturing-impairing blizzard and a fire damaging a Japanese factory. These events had a significant impact on the two countries that together produce 50% of semiconductor chips for the automobile industry. The emergence of the Delta variant and ensuing COVID-19 outbreaks in Southeast Asia further exacerbated the semiconductor chip scarcity.

► Rising Demand for Electric Vehicles
The electric vehicle market is witnessing exponential growth, with sales surpassing 10 million in 2022. Electric vehicles' share in total sales surged from 4% in 2020 to 14% in 2022, reflecting more than quadrupled growth within just three years.

► India's Ascension in the Global Light Vehicle Market
In 2022, India outpaced Japan to secure the third spot in the global light vehicle market. This achievement was driven by resurgent demand for personal mobility and last-mile deliveries in the post-pandemic landscape. The Indian automobile industry achieved remarkable growth, consistently maintaining over 20% strong double-digit growth.

► Challenges for the Japanese Automobile Market
The year 2022 presented significant challenges for the Japanese auto industry. According to data from the Japan Automobile Dealers Association and Japan Light Motor Vehicle and Motorcycle Association, a total of 4,201,321 new vehicles were sold in Japan. Unfortunately, this figure represented a concerning year-on-year decline of 5.6%, marking the fourth consecutive year of decreasing sales.

► Future Outlook: Resilience Amidst Challenges
Despite a financially uncertain environment, the automobile sector is expected to expand in the coming years. Global auto sales are projected to reach 69 million in 2023, driven by increased penetration in emerging economies, growing electric vehicle adoption, and China's recovery following the easing of Covid-19 restrictions. These factors are expected to mitigate the impact of the cost-of-living crisis and supply chain disruptions, combined with sustained output and pent-up demand. Anticipations for 2024 suggest a further increase in automobile sales to 74 million, continuing the upward trend seen since 2020, approaching pre-pandemic levels.

► Scope of the Study
Makreo Research has published a study on "Global Automobile Industry Production and Consumption Market Report, Edition 2023". The market assessment has been carried out using qualitative and quantitative methods and has combined the production and consumption scenarios. The market has witnessed many shifts in recent past after the COVID-19 outburst & Russia & Ukraine war. The report also covers major automobile exporting and importing countries. Future outlook has been assessed keeping various influencing factors into consideration and also to assess the expected opportunities in the market.

To Know More:
Global Automobile Industry Production and Consumption Market Report - Edition 2023
https://www.makreo.com/report/global-automobile-industry-production-consumption-market-report-edition-2023

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