Title: Global Car Sales Expected to Increase by 5% in 2023, with Electric Vehicles Gaining Momentum in Europe
Subtitle: Chinese Automakers Making Inroads in European Market
Date: [Current Date]
According to the latest edition of the Global Automotive Outlook by consulting firm AlixPartners, global car sales are projected to reach 83 million vehicles in 2023, representing a 5% increase compared to 2022. Furthermore, the report suggests an average annual growth rate of 3% between 2024 and 2027. However, the market dynamics will vary across different regions.
The United States is expected to experience a 10% growth in car sales in 2023, followed by a steady 3% annual growth until 2027. In contrast, the European market will see more modest growth, with a 6% increase in 2023 and a 2% increase in the following years.
Japan is set to become the largest market globally, with 24.9 million vehicles sold in 2023. Surprisingly, Japan has surpassed other countries to become the world’s leading exporter of automobiles, climbing from the sixth position in 2019. Japanese car sales are projected to reach 29.1 million in 2027, representing a 4% annual growth rate. Over the next four years, Japan will continue to dominate as the largest vehicle exporter, with an 80% increase compared to the first quarter of 2022.
Additionally, for the first time in history, more than 50% of the domestic market will be satisfied by vehicles produced by domestic brands, up from 35% in 2020. Projections indicate that this market share will reach 65% by 2030.
AlixPartners suggests that traditional car manufacturers should pay close attention to emerging trends in China, not only due to the size of this market but also as an indicator of future developments in other countries. Chinese brands such as BYD, Zeekr, and Xpeng are gaining traction in the domestic market by delivering new technological features at a faster pace than their Western counterparts. BMW is the highest-rated foreign brand in terms of technological features, ranking second behind Zeekr and ahead of BYD and Xpeng.
Chinese automakers are also making significant strides in the European market, particularly with electric vehicles (EVs). These brands have improved safety and quality while maintaining competitive prices, attracting both private and corporate customers. For instance, German car rental company Sixt recently ordered 100,000 electric vehicles from BYD.
Estimates vary, but it is expected that EVs will account for 40-50% of European sales by 2030. Some projections suggest that Chinese automakers will capture 12-20% of this market, focusing on non-luxury segments that European manufacturers are willing to sacrifice due to minimal or no profits from lower-priced vehicles.
Chinese automakers are gradually entering the Czech market as well. The most visible presence comes from MG, a brand with British roots but Chinese ownership. In the first five months of this year, MG registered 848 cars, securing the 20th position among all brands. It is now just behind Mazda but ahead of Mitsubishi, Lexus, and Nissan. Dongfeng is also rebuilding its sales network in the Czech Republic, while Nissan’s importer plans to start selling Geely vehicles this year.
Title: Car Sales in the EU Continue to Rise
Subtitle: Electric Vehicles Surpass Diesel Cars in June
Date: [Current Date]
New passenger car registrations in the European Union (EU) increased by 17.9% to 5.4 million vehicles in the first half of this year, according to data released by the European Automobile Manufacturers’ Association (ACEA). The data also revealed that sales of fully electric cars surpassed diesel cars for the first time in June.
Overall car sales in the EU rose by 17.8% to 1.045 million vehicles in June, marking the eleventh consecutive month of growth in the automotive market. Sales increased in all EU member states except Hungary.
The Czech Car Importers Association (SDA) previously announced that new car sales in the Czech Republic grew by 16.8% to 115,548 vehicles in the first half of the year. In June alone, sales increased by 9.3% to 20,480 vehicles.
Sales of fully electric cars in the EU rose by approximately two-thirds to 158,252 vehicles in June. Their market share also increased to 15.1% from 10.7% compared to the previous year. On the other hand, diesel car sales declined by 9.4% to 139,595 vehicles, accounting for 13.4% of the market. The most popular category in the EU remained gasoline cars, with a market share of 36.3%, followed by hybrid vehicles.
In the Czech Republic, sales of fully electric cars increased by 4.6% to 637 vehicles in June. However, the growth was more significant for diesel cars, which saw a 20.5% increase to 5,038 vehicles. Sales of gasoline cars also rose by 3.7% to 10,433 vehicles.
Throughout the first half of the year, sales of fully electric cars in the Czech Republic increased by 52.6% to 3,008 vehicles. Diesel car sales rose by 16% to 27,673 vehicles, while gasoline car sales increased by 12% to 60,841 vehicles.
EU member states have recently approved regulations that practically ban the sale of new gasoline and diesel cars in the EU from 2035 onwards.
Note: The content has been translated from Czech to English and may contain minor errors or discrepancies.Global Car Sales Expected to Increase by 5% in 2023, According to AlixPartners
According to the 20th edition of the Global Automotive Outlook by consulting firm AlixPartners, global car sales are projected to reach 83 million vehicles this year, which is a 5% increase compared to 2022. Furthermore, an average annual growth rate of 3% is expected between 2024 and 2027. However, the market will develop differently in various regions. For example, the United States is expected to experience a 10% growth in 2023, followed by a steady 3% growth until 2027. On the other hand, Europe’s recovery will be more moderate, with a 6% increase in sales this year and a 2% increase in the following years.
The largest market in the world, with 24.9 million vehicles in 2023, will be China. In the first quarter of 2023, Japan surpassed China as the world’s leading exporter of automobiles, a surprising shift from its sixth position in 2019. Japanese car sales are expected to reach 29.1 million in 2027, representing a 4% annual growth, and will remain the largest vehicle exporter with an 80% increase compared to the first quarter of 2022.
Additionally, for the first time in history, more than 50% of the domestic market will be satisfied with vehicles produced by domestic brands (35% in 2020). According to forecasts, this market share is expected to reach 65% by 2030.
AlixPartners suggests that traditional car manufacturers should pay close attention to trends in China, not only because of the size of this market but also as a precursor to where the market will head in other countries.
AlixPartners highlights that Chinese brands such as BYD, Zeekr, and Xpeng are increasing their sales and market share in the domestic market due to their ability to deliver new technological features at a faster pace than Western car manufacturers. The best-rated foreign brand in terms of technological features is BMW, ranking second after Zeekr and ahead of BYD and Xpeng.
It’s not just the Chinese market where domestic manufacturers are making their presence felt. They are also making significant strides in Europe, particularly with electric vehicles. Recently, their safety and quality have improved while maintaining competitive prices, and customers, both private and corporate, are taking notice. For example, German car rental company Sixt recently ordered 100,000 electric vehicles from BYD.
Estimates vary, but it is expected that electric vehicles will represent 40-50% of European sales by 2030. According to some projections, Chinese automakers will capture 12-20% of these sales as they focus on non-luxury segments that many European carmakers are willing to sacrifice due to minimal or no profits from lower-priced vehicles.
Chinese automakers are slowly entering the Czech market as well. The most visible brand in this direction is MG, a brand with British roots but Chinese ownership. In the first five months of this year, MG registered 848 cars and climbed to the 20th position among brands. It is now just behind Mazda but ahead of Mitsubishi, Lexus, or Nissan. Dongfeng is also rebuilding its sales network in the Czech Republic, and Nissan’s importer plans to start selling the Geely brand this year.
Car Sales in the EU Continue to Rise
Electric cars surpassed diesel cars in June
The sale of new passenger cars in the European Union increased by 17.9% to 5.4 million vehicles in the first half of the year, according to data published by the European Automobile Manufacturers’ Association (ACEA). The data also showed that the sale of fully electric cars exceeded the sale of diesel cars for the first time in June.
Overall car sales in the EU increased by 17.8% to 1.045 million vehicles in June. The automotive market in the EU has shown growth for eleven consecutive months. Sales increased in all member states except Hungary.
The Czech Car Importers Association (SDA) previously announced that the sale of new passenger cars in the Czech Republic increased by 16.8% to 115,548 vehicles in the first half of the year. In June
How are Chinese automakers strategically positioning themselves in the European market with electric vehicles?
Se by 5% in 2023, with electric vehicles gaining momentum. Chinese automakers are making inroads in the European market, particularly with electric vehicles.
The rising vehicle sales and changing market dynamics in the global automotive industry are undoubtedly significant trends to watch. Exciting times lie ahead as manufacturers adapt to new consumer demands and emerging technologies. Stay tuned for transformative developments in this ever-evolving industry!