The global automotive market, by value, is estimated to be 92 Million Units in 2023 and is projected to reach 96 Million Units by 2024, at a growth rate of 5.0% from 2023 to 2024. In the near future, demand for recreational boat is expected to increase due to favourable investment made for boat industry.

While initial forecasts predicted a post-pandemic surge, the reality has been bumpier. Inflationary pressures fueled by the war in Ukraine and persistent supply chain disruptions have forced central banks to tighten monetary policy, dampening economic growth. Despite these headwinds, the automotive industry has shown unexpected resilience. Global automotive sales is expected to grow by 12.3% in 2023, defying predictions of a slowdown. However, the future remains uncertain. 2024 is likely to see a continued deceleration in economic growth, with a potential soft landing or even a mild recession in some regions. This will present challenges for the automotive sector. Consumer spending could tighten as inflation persists and borrowing costs rise. Additionally, ongoing supply chain issues and potential resource shortages could further disrupt production and inflate vehicle prices.

However, the future remains uncertain. 2024 is likely to see a continued deceleration in economic growth, with a potential soft landing or even a mild recession in some regions. This will present challenges for the automotive sector. Consumer spending could tighten as inflation persists and borrowing costs rise. Additionally, ongoing supply chain issues and potential resource shortages could further disrupt production and inflate vehicle prices. The war in Ukraine casts a long shadow, fueling energy insecurity and inflation. Car sales are expected to decline slightly in 2024, with luxury and electric segments potentially holding up better. The region remains the engine of global growth, led by China and India. Despite their own slowdown concerns, demand for affordable vehicles in these markets is likely to stay resilient, offering a bright spot for the industry.

North America:

Passenger Vehicles, Despite a potential economic slowdown, pent-up demand and a shift towards SUVs and trucks are expected to keep the market afloat. However, rising interest rates could dampen sales in 2024.  Commercial Vehicles, The e-commerce boom is driving demand for delivery vans and light trucks, while rising fuel costs could push companies towards adopting electric commercial vehicles (eCVs).  In Electric Vehicles, The US leads the charge in EV adoption, with Tesla dominating the market. Government incentives and increasing battery range are fueling growth, although charging infrastructure needs further development. While facing competition from EVs, ICE vehicles still hold a strong grip on the market, particularly in rural areas and for budget-conscious buyers. Advancements in hybrid technology offer a bridge between traditional and electric powertrains.

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Europe:

In the Passenger Vehicles segments The war in Ukraine and energy insecurity cast a shadow on the market, potentially leading to a slow down in car sales in 2024. However, the European Union’s ambitious climate goals are pushing manufacturers towards EVs, with a focus on smaller, efficient cars. In case of Commercial Vehicles,  Like North America, e-commerce is driving demand for eCVs, especially in urban areas. Stringent emission regulations are also accelerating the adoption of cleaner technologies. For Electric Vehicles, Europe boasts a strong EV market, with several leading manufacturers like Volkswagen and BMW aggressively investing in the sector. ICE Vehicles, Despite the EV push, ICE vehicles remain dominant especially for larger vehicles like SUVs. However, stricter emission standards and Euro-7 will gradually phase out older, pollutive models smaller segment cars.

Asia-Pacific:

For Passenger Vehicles,  Asia-Pacific is the world’s largest car market, driven by rapidly growing economies and a burgeoning middle class. Demand for affordable vehicles remains strong, particularly in China and India. For Commercial Vehicles, The region’s booming e-commerce and logistics sectors are creating a substantial demand for eCVs, especially in China, Japan and South Korea. Government support for EV development is further accelerating market growth. For Electric Vehicles, While still in its early stages compared to Europe, the Asia-Pacific EV market is experiencing rapid growth, fueled by government incentives, falling battery costs, and increasing model availability. China is the undisputed leaders across entire supply chain of EV except mining and expected to remain the same way in 2024 as well. For ICE Vehicles,  Despite the EV surge, ICE vehicles remain dominant in most Asian countries due to their affordability and practicality. However, stricter emission regulations and rising fuel costs will gradually push the market towards cleaner technologies such as EVs and blended fuel

Major Trends for 2024:

• Electric Vehicle to see rise in sales volume however a  decline in sales growth rate is expected to due to an expected economic slow down.
• However development of charging infrastructure wont slow down as governments globally focus on developing their charging infra to enable greater EV adoption as result ultrafast charging solution will see a steady growth across all regions.
• China is expected to be the largest EV market. Driven by very fast pace of innovation in EV and Battery technologies along with a robust presence across entire global EV value and supply chain puts China in a dominant position well in 2024.
• Used car market expected to heat up in 2024. The rising new car costs will divert a lot of customers towards used cars which will increase the demand for used cars. An improved customer experience by B2C segment is expected to have good growth compared to C2C sales channel.
• Online car sales although at a very nascent stage is expected to rise in 2024 driven by a very young tech-savvy demography especially in the Asia-pacific region.
• Connected Cars and incorporation of 5G will be an take a important priority with OEMs to enhance driver and passenger experience, Increase comfort and connectivity along with develop new business models through the same to drive their revenues up.

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