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Author: Ali Ahmed Publish Time: 2024-07-05 Origin: Insidermonkey
We recently compiled a comprehensive report detailing the 20 Largest Automotive Markets in the World. In this article, we’ll be taking a look at what's going on in the global auto industry and the largest automotive market in the world.
Providing millions of jobs and supporting numerous sectors, the global automotive industry plays a crucial role in the global economy. According to a report by Towards Automotive, the global automotive industry was estimated to have reached a value of $4.07 trillion in 2023. Looking forward, the market is expected to grow at a compound annual growth rate (CAGR) of 5.66% from 2024 to 2032 to reach a value of $6.67 trillion by the end of the forecast period.
The global automotive industry has experienced significant shifts in recent years, driven by the rapid adoption of fuel-efficient cars and electric vehicles. China is heavily investing in electric vehicle (EV) production. From 2009 to 2023, the Chinese government has invested a total of $230.8 billion to support the growth and development of its electric vehicle industry, as revealed by an analysis published by the Center for Strategic and International Studies (CSIS).
Chinese electric vehicle manufacturers are emerging as significant global players, challenging automakers around the world. These Chinese companies are shaking up the competitive landscape, both within China and globally, by offering affordable and technologically advanced electric vehicles. On April 3, Bloomberg reported that Tesla, Inc (NASDAQ:TSLA) is facing significant challenges in China, the largest EV market, due to intense competition from local rivals. The company’s market share in China has shrunk from 10.5% in the first quarter of 2023 to around 6.7% in the fourth quarter, ending in December 2023. Chinese EV makers like BYD Company Limited (SHE:002594), NIO Inc. (NYSE:NIO), XPeng Inc. (NYSE:XPEV), and Li Auto Inc. (NASDAQ:LI) are offering newer models with more advanced features compared to Tesla, Inc’s (NASDAQ:TSLA) relatively unchanged Model 3 and Model Y. BYD Company Limited (SHE:002594), in particular, has a wide range of vehicles catering to different price points. At the more affordable end, it offers the Seagull hatchback, which features a 10-inch rotating touchscreen and is priced under $10,000. On the higher end, BYD Company Limited (SHE:002594) has the Yangwang U8 plug-in hybrid SUV, which boasts an impressive 1,200 horsepower, can float on water, and can perform a 360-degree "tank turn".
The transition to EVs may also start gaining significant momentum in the US. On June 7, The New York Times reported that the Biden administration has unveiled new fuel efficiency standards as part of its strategy to accelerate the transition to electric vehicles in the US. The Transportation Department's regulations require American automakers to improve the average fuel economy of their passenger cars to 65 miles per gallon by 2031, up from the current 48.7 miles per gallon. The Environmental Protection Agency (EPA) also recently introduced strict new limits on tailpipe emissions, aiming to ensure that the majority of new passenger cars and light trucks sold in the US by 2032 are electric or hybrid vehicles. American automakers will be looking to increase both the number of all-electric and hybrid vehicles they sell, as well as improve the fuel efficiency of their conventional cars.
General Motors Company (NYSE:GM) is an American multinational automotive manufacturing company that ranks high among the world’s biggest car manufacturers by revenue. The company is focused on advancing an all-electric future by leveraging its Ultium battery platform to power a diverse range of electric vehicles, from mass-market to high-performance models. General Motors Company (NYSE:GM), its subsidiaries, and its joint venture entities market vehicles under the Chevrolet, Buick, GMC, Cadillac, Baojun, and Wuling brands. GM is one of the best car stocks to buy right now.
General Motors Company (NYSE:GM) is making significant progress in its EV business, ramping up production and improving profitability. In its Q1 2024 earnings report, the company reported that it has increased its battery module production by 300% over the past six months. General Motors Company (NYSE:GM) is on track to double its current EV production capacity by the end of the summer. GM's EV sales have also seen a sharp rise, with a 21% year-over-year increase in retail customer deliveries. The all-electric Cadillac LYRIQ, for instance, outsold all European luxury brand EVs in the first quarter of 2024. Since mid-March, GM has also been delivering the Chevrolet Blazer EV with updated and improved software, benefiting from the company's focus on end-to-end software improvements.
Looking ahead, the Chevrolet Equinox EV is expected to arrive in showrooms in the second quarter of 2024 as the most affordable long-range EV in the US. General Motors Company (NYSE:GM) also plans to introduce more affordable trim levels for the Chevrolet Equinox EV, Blazer EV, and Silverado EV in the second half of 2024, aiming to drive volume and market share growth. GM also aims to expand its Cadillac EV lineup with the OPTIQ and Escalade IQ later this year.
Furthermore, in the first quarter of 2024, General Motors Company (NYSE:GM) and its joint ventures delivered more than 441,000 vehicles in China. This included a significant increase of 42.6% in sales of new energy vehicles (NEVs), reaching a record high of more than 128,000 units. GM plans to launch a record number of NEV models in 2024 in China, leveraging a combination of global and local solutions, including new plug-in hybrid technologies, to cater to the diverse needs of consumers.
We compiled a list of the 20 largest automotive markets in the world. To collect data for our list, we consulted the International Organization of Motor Vehicle Manufacturers (OICA). This database provided us with details on the registrations or sales of new passenger cars in markets around the world in 2023. We used the latest data available in their dataset to rank the 20 largest automotive markets in the world in ascending order of their total passenger car sales in 2023. Let's take a look at the largest automotive market in the world.
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