Automotive Industry Trends May 2024

A sharp reduction in car production and sales after a robust performance last year Automotive Industry Trends May 2024 Car sales have cooled down after double digit growth in 2023 A marked slowdown in global car production  in 2024 and 2025 We expect global automotive output to slow down to 0.8% this year, after an 11% increase in 2023. Main reason are tight credit conditions in Western countries and a subdued Chinese economy. The US has decided to impose high tariffs on Chinese EV imports. Emerging Asian markets will lead global car production growth in the long-term. US automotive: High interest rates weigh on demand US car sales to slow down to 2.5% in 2024 and 2025 after growing 14.6% in 2023. Electric vehicle (EV) sales are below expectations as higher costs remain a barrier, but the long-term outlook is good. Fierce competition in the Chinese electric vehicles market Lower consumer confidence weighs on domestic car sales, but local electric vehicle brands expand their market share.  However, EV producers´ margins suffer from a price war. Smaller EV businesses could quickly fail without continuous capital flow.  Higher credit risk for smaller automotive suppliers in Europe We expect insolvencies and payment defaults among suppliers to increase this year, as car sales shrink, and discounts weigh on margins. Competitive pressure from Chinese electric vehicle producers is a major challenge for European firms. Following the US, the EU could impose punitive tariffs on Chinese EV car imports soon. Please download the report below to read more about Industry Trends automotive.