Global Automotive Outlook

The global passenger vehicles and commercial vehicles combined sales was 92 million units in 2023 and is projected to 95 million units in 2024, witnessing a YoY growth of 3.1% from 2023 to 2024. The rising demand for electric vehicles, advanced safety and connectivity in vehicles are the trends shaping the market. The market leaders operating in the automotive market are Toyota, Nissan, Volkswagen, Hyundai, General Motors with over 25% of the market share. Whereas BYD, Tesla and Volkswagen are the major shareholders in the EV market. The passenger vehicles share dominates the automotive market. China leads the in sales of passenger vehicle globally, whereas the US dominates the sales of commercial vehicles. Moreover, the sales of EV units are highest in the Asian region.

The unit sales of EV in 2023 crossed 13.5 million units globally. However, the EV market witnessed a slight decline in the YoY growth in 2023 compared to that in 2022. The expected growth rate of EV sales in the US is around 20% in 2024. The major factors declining the growth rate are limited capacity of the battery range as well as the disruption caused by Ukraine-Russia war and Israeli–Palestinian conflict on the manufacturing and trade sector. Moreover, the prices of raw material are unstable which in turn restraints the growth of a high potential market. The major players in the market are expected to revise their investments and product launch plans looking at the uncertain scenarios in the market in 2024.

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Further, aligned with the EV sales growth, DC fast and ultrafast charging have emerged as trending technology and will be adopted rapidly in the market owing to its advantage of time saving in charging a vehicle. Several OEMs and third-party companies are offering fast charging technology to the customers. For instance, Tesla, Nissan, Kia and others provide fast charging hardware. Moreover, several rapid charging stations are being set up to fulfil the demand in the market. Installation of these fast charges will be doubled in 2024 to that installed in 2022. The maintenance of these charging stations is carried out by tech giants such as ABB and Siemens. In addition, the OEMs are collaborating with governments to set up new charging stations. For instance, in December 2023, Tata Power EV Charging Solutions Limited has collaborated with Indian Oil Corporation Limited (IOCL) to install over 500 fast and ultra-fast EV charging points in major cities and on highways in India. Tata Power currently holds around 60% of the share in the Indian market of EV charging stations.

With consistent efforts and investments towards self-driving vehicles, L3 & L4 autonomous vehicles are expected to gain pace in the year 2024. For instance, Mercedes-Benz, BMW and Aurora have announced to launch autonomous cars and trucks by 2024. Moreover, extensive testing of autonomous vehicles is being carried out on roads to detect strengths and flaws of the technology. For instance, in May 2023, Bosch was granted permission to test L4 driverless cars in Germany. Similarly, in December 2023, IM Motors, a brand of SAIC Motor Corp and Alibaba were granted permission to test L3 self-driving car in Shanghai. In addition to testing the cars on roads several tech giants and OEMs have adopted acquisition strategies to take over smaller companies that operate in the space of developing driverless or autonomous technology.

Another major milestone is the use of smart technology in automotive manufacturing, wherein the production cost and time is saved, and maximum production is achieved. With the help of technologies such as AI, IoT and others several technologies are being developed as a part of smart manufacturing. For instance, Tesla has adopted Gigacasting which manufactures 70 parts as 3 parts of rear body using over 500 robots and one giga press. Similar technology is adopted by Toyota, where 33 parts are manufactured as a single part. Such smart manufacturing saves production time and cost by approximately 35% for these OEMs. Following this trend Hyundai, Ford and Volvo have also announced to adopt gigacasting gradually by 2025. The other application of smart manufacturing includes product development and simulation which is adopted by OEMs such as Jaguar and Mercedes-Benz.

Adoption of 5G in automobiles for enhanced connectivity will open up new opportunities and technologies in the near future. The use of 5G connectivity will be applicable for navigation, infotainment, communication, and other applications. Market leaders are adopting several strategies to take first mover advantage and acquire higher market share in this space. For instance, in December 2023, Vodafone and Bosch joined hands to develop and test 5G network for driver assistance systems and vehicle development. This project will run for eight months wherein connectivity tests will be carried out on a variety of road surfaces and situations. Similarly, in November 2023, Huawei and China Unicom collaborated to initiate and deploy advanced 5G technology that will be used to transform automotive manufacturing in China. In addition, in December 2023, Magna, a major supplier in the automotive industry joined Telia and Ericsson’s NorthStar Program to innovate and deploy the 5G ADAS system.

Related Reports:

Automotive Market Outlook 2023-2024 by Vehicle Type (Passenger Vehicles (PV) and Commercial Vehicles (CV)), Propulsion Type (ICE and Electric) , Passenger Car - segments (Sedan, Hatchbacm and Utility Vehicles) and Region - Global Forecast to 2024

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