The global automotive market is expected to grow this year

The Serbian Association of Vehicle and Parts Importers conveys an analysis from one of the world's most reputable financial, consulting, and analytical corporations, the American S&P Global, headquartered in Manhattan (New York), which forecasts continued growth in the global automotive market (passenger and light commercial vehicles) in 2024.

According to experts from this corporation, global car sales will grow at a rate of 2.8%, reaching 88.3 million vehicles. Last year, according to S&P Global data, nearly 86 million vehicles were sold worldwide, representing an 8.9% growth compared to 2022, which marked the beginning of the industry's recovery after a significant blow during the global pandemic.

Sales in Europe are expected to exceed 15.1 million vehicles in 2023, a growth of 2.9% compared to 14.7 million in the previous year. Key parameters in this forecast include risks of recession in the EU's major markets, interest rates, credit conditions, the strong momentum of electric vehicle demand, difficulties in energy procurement, and upcoming elections in the EU. Analysts from S&P Global believe that the key challenge in Europe will be the ability of countries to subsidize the purchase of electric vehicles.

Car sales in the U.S. are expected to increase by 2.0% annually, reaching 15.9 million. The previous year saw the sale of 15.5 million vehicles. Factors influencing the U.S. vehicle market include high interest rates, less favorable credit conditions, and consistently high car prices. Positive signals include announcements that around 100 electric vehicle models will be offered in the market.

China, the world's largest market, reached 25.3 million vehicles sold in 2023, with a growth of 4.9%. Analysts predict a 4.2% growth for China in 2024, with vehicle sales reaching 26.4 million units. The most interesting prediction is the expected 44% growth in electric vehicle sales, surpassing the 36% growth in 2023.

Demand for electrified vehicles will continue to increase.

Electrified vehicles are expected to further dominate the market. Sales of pure electric, plug-in hybrids, and "traditional" hybrids are predicted to reach 17.5% globally (annual growth of 39.5%). China will have the largest market share for electrified vehicles, reaching 26.8% (annual growth of 28%). In Europe, vehicles using electric power for propulsion will account for 22% of all cars and light commercial vehicles sold, representing a remarkable 41% annual growth.

The U.S. market will be a record-breaker in this parameter, with an astonishing 66.4% annual growth in the sales of these types of vehicles, contributing to a total of 13.2%.

Even in the most populous country in the world, India, electrified vehicles are steadily conquering the market. The forecast indicates that the share of these vehicles in total sales will reach 4.1% in 2024, representing a respectable annual growth of 39%.

Source: S&P Global Mobility
Photo: Kjpargeter on Freepik