Title: Global Car Sales Expected to Increase by 5% in 2023, with Electric Vehicles Leading the Way 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 forecasts 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 car market in the world, with 24.9 million vehicles sold in 2023. Surprisingly, Japan has surpassed other countries to become the global leader in car exports, 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 be the largest exporter of vehicles, 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. The forecast suggests that this market share will reach 65% by 2030.
AlixPartners advises traditional car manufacturers to 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. The best-rated foreign brand in terms of technological features is BMW, ranking second after 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 the safety and quality of their EVs 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 represent 40-50% of European sales by 2030. Some projections suggest that Chinese automakers could capture 12-20% of this market, as they focus on non-luxury segments that European manufacturers are willing to sacrifice due to minimal or no profits from low-priced vehicles.
Chinese automakers are gradually entering the Czech market as well. The most visible presence comes from the brand MG, which has British roots but is owned by a Chinese company. In the first five months of this year, MG registered 848 cars in the Czech Republic, securing the 20th position among all brands. It is now just behind Mazda but has surpassed 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.
In other news, the sale of new passenger cars in the European Union (EU) increased by 17.9% in the first half of the year, reaching 5.4 million vehicles, 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% in June, totaling 1.045 million vehicles. This marked the eleventh consecutive month of growth in the EU automotive market, with sales increasing in all member states except Hungary.
In the Czech Republic, the sale of new passenger cars increased by 16.8% in the first half of the year, reaching 115,548 vehicles. In June alone, sales rose by 9.3% to 20,480 vehicles.
The sale of fully electric cars in the EU increased by approximately two-thirds in June, reaching 158,252 vehicles. Their market share also rose to 15.1% from 10.7% a year ago. On the other hand, diesel car sales declined by 9.4% in June, totaling 139,595 vehicles, representing a market share of 13.4%. The most sold category in the EU remained gasoline cars, accounting for 36.3% of the market, followed by hybrid vehicles.
In the Czech Republic, the sale of fully electric cars increased by 4.6% in June, reaching 637 vehicles. This was significantly lower than the increase in diesel car sales, which rose by 20.5% to 5,038 vehicles. Sales of gasoline cars increased by 3.7% to 10,433 vehicles.
In the first half of the year, the sale of fully electric cars in the Czech Republic increased by 52.6% to 3,008 vehicles. Diesel car sales increased by 16% to 27,673 vehicles, while gasoline car sales rose by 12% to 60,841 vehicles.
EU member states have recently approved a regulation that practically bans the sale of new gasoline and diesel cars in the EU from 2035 onwards.
In conclusion, the global automotive industry is expected to experience steady growth in the coming years, with electric vehicles leading the way in Europe. Chinese automakers are making significant progress in both the domestic and international markets, posing a challenge to traditional manufacturers. As the industry continues to evolve, it is crucial for carmakers to adapt to emerging trends and technological advancements to remain competitive in the ever-changing automotive landscape.Title: Global Car Sales Expected to Rise by 5% in 2023, with Europe Leading the Way
Subtitle: Electric Vehicles Outsell Diesel Cars for the First Time in Europe
Date: July 19, 2023
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 forecasts an average annual growth rate of 3% between 2024 and 2027. However, the market will experience varying trends across different regions.
The United States is expected to see a 10% growth in car sales in 2023, followed by a steady 3% annual growth until 2027. In contrast, Europe’s growth will be more moderate, with a 6% increase in 2023 and a 2% increase in the following years.
Japan is set to become the largest car market in the world, with 24.9 million vehicles sold in 2023. Surprisingly, it will surpass China, which held the top position in 2019. Japanese car sales are projected to reach 29.1 million vehicles in 2027, representing a 4% annual growth. Over the next four years, Japan will maintain its position as the largest exporter of vehicles, with an 80% increase compared to the first quarter of 2022.
The report also highlights the growing market share of domestic car brands, which are expected to satisfy more than 50% of the local market by 2030, compared to 35% in 2020.
AlixPartners suggests that traditional car manufacturers should pay close attention to emerging trends not only in their own markets but also in other countries. Chinese brands such as BYD, Zeekr, and Xpeng are gaining traction due to their ability to deliver new technological features at a faster pace than Western carmakers. BMW is the highest-rated foreign brand in terms of technological functions, ranking second behind Zeekr and ahead of BYD and Xpeng.
Chinese automakers are also making their presence felt in Europe, particularly in the electric vehicle segment. They 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 electric vehicles will account for 40-50% of European sales by 2030. Some projections suggest that Chinese automakers could capture 12-20% of this market, focusing on non-luxury segments that European carmakers are willing to sacrifice due to minimal or no profits from low-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, ranking 20th 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.
In the European Union, new car sales in the first half of the year increased by 17.9% to 5.4 million vehicles, according to data released by the European Automobile Manufacturers’ Association (ACEA). The data also revealed that electric cars outsold diesel cars for the first time in June.
Overall car sales in the EU rose by 17.8% in June to 1.045 million vehicles, marking the 11th consecutive month of growth. Sales increased in all member states except Hungary.
In the Czech Republic, new car sales in the first half of the year rose by 16.8% to 115,548 vehicles. In June alone, sales increased by 9.3% to 20,480 vehicles.
Electric car sales in the EU increased by approximately two-thirds in June to 158,252 vehicles. Their market share also rose to 15.1% from 10.7% a year ago. On the other hand, diesel car sales declined by 9.4% in June, totaling 139
What factors have contributed to the significant growth of electric vehicles in Europe?
A from the European Automobile Manufacturers’ Association (ACEA). This significant growth can be attributed to the easing of COVID-19 restrictions and the introduction of new electric models.
It is evident that electric vehicles (EVs) are leading the way in Europe. The demand for EVs has surged in recent years, driven by government initiatives, increasing environmental awareness, and advancements in technology. As a result, EVs are expected to make up a significant portion of European car sales by 2030.
Chinese automakers have recognized this trend and are making inroads into the European market. They have been able to improve the safety, quality, and affordability of their EVs, making them attractive to both individual consumers and corporate fleets. With their competitive prices and technological advancements, Chinese brands like BYD, Zeekr, and Xpeng are gaining traction in Europe.
This shift towards Chinese EVs is evident in significant orders from prominent European companies. German car rental company Sixt recently placed an order for 100,000 electric vehicles from BYD, highlighting the growing popularity of Chinese brands.
While European manufacturers have traditionally dominated the market, they may be willing to sacrifice the non-luxury segments to focus on higher-profit models. This presents an opportunity for Chinese automakers to capture a sizable portion of the European market, especially in the non-luxury segments that European manufacturers may overlook.
Chinese automakers are not only targeting Europe but also other regions. The Czech market, for example, has seen an increasing presence of Chinese brands like MG and Dongfeng. The Czech Republic has witnessed a surge in MG registrations, positioning the brand among the top 20 car brands in the country. Furthermore, Dongfeng is rebuilding its sales network in the Czech Republic, while Nissan’s importer plans to start selling Geely vehicles.
In conclusion, the global car sales outlook is positive, with a projected 5% increase in 2023. Electric vehicles are leading the way in Europe, and Chinese automakers are capitalizing on this trend by offering competitive EVs with advanced technology. As the market dynamics continue to evolve, it is crucial for traditional car manufacturers to pay attention to emerging trends from China and adapt their strategies accordingly. Chinese automakers are gradually making their mark in the European market, particularly in the EV segment, and are expected to capture a significant market share in the coming years.
