Global automobile industry is an important economic metric, it is on the cusp of new technological advancements. Additionally, in the present era, the automotive industry is being driven by consumer desire for expensive and distinctive features. Numerous factors, including the affordable availability of skilled labor, the strength of R&D facilities, and low-cost steel manufacturing, assist the automobile industry globally.
In 2020, numerous nations enacted absolute lockdowns, which halted the supply and development of chips and caused a global shortage. When a fire damaged a facility in Japan and a blizzard disrupted production in the US, manufacturers in both countries which together produce 50% of the semiconductor chips used in cars worldwide experienced a knock to supply. The paucity of semiconductor chips was made worse by the creation of the Delta version and subsequent COVID-19 breakouts throughout Southeast Asia and across the world
Across the world, around 79.1 million automobiles were produced in 2021, a 1.3% rise from 2020. In comparison to the year 2020, the global production of passenger cars increased by 2% in 2021. Whereas currently, the global automobile industry is headed toward a new trend that will see more electric and hybrid vehicles produced and sold in all regions. A major trend in the global automobile industry is the rise of innovative subscription-based vehicle user (not ownership) models. In 2021, when used car sales are expected to soar, new car sales could be in jeopardy.
Worldwide electric car sales soared through 2021 and have continued to grow strongly so far in 2022, future growth will require greater initiatives to diversify battery manufacturing and essential mineral supplies to lower the risks of bottlenecks and price increases.
Global Economic Performance
The Global economy increased on average at the rate of 3.4%, between 2014 to 2019. In 2020, owing to the outbreak of the virus, the global economy shrank by -3.3% the biggest reduction since 1970. Nevertheless, the economy experienced a 5.8% growth in 2021. The conflict between Russia and Ukraine, the uncertainty surrounding COVID, the deteriorating relationship between the US and China, and other factors have made the recovery still difficult. With projected GDP growth of 6.6% in 2022 and 6.3% in 2023, South Asia is expected to continue to outperform the world in GDP growth.
COVID-19 Impact: The COVID-19 restrictions that resulted in a double-digit decline in sales due to the suspension of vehicle production and sales worldwide also had a significant negative impact on the automotive industry. Later in 2020, the market was also negatively impacted by supply chain disruptions, which are anticipated to persist into 2021. However, the auto industry is recovering faster than expected, partly due to consumer trends favoring personal mobility over shared and public transit.
Impact of Russia-Ukraine War: The ongoing Russian-Ukrainian situation has caused neon gas costs to increase tenfold, which may have an effect on Asia-Pacific automakers' ability to produce vehicles. In addition, the supply of palladium needed to make autos will be restricted by the sanctions placed on Russia. The production, sales, and delivery of autos are then expected to increase as a result.
Automobile Industry Performance by Region
North America Automobile Industry: This section discusses the US Automobile industry performance and Canada's automotive industry growth over the last five years.
Europe Automobile Industry: This section covers key European economies that have an influence over the global production and supply of automobiles.
Asia Pacific Automobile Industry: This section talks about China, Japan, and India's automobile industry performance.
Latin America Automobile Industry: This section concentrates on Brazil and Mexico's automobile industry performance.
Africa Automobile Industry: This section details Africa positioning in the global automobile market.
Middle East Automobile Industry: Saudi Arabia, UAE, and Turkey have been discussed in detail in the global automobile industry report.
Scope of the Study
The following synopsis is based on the report " Global Automobile Industry Production and Demand – Regional Trend Assessment – Edition 2" published by Makreo Research and Consulting.
The report delves deeply into various parameters such as the Market performance of different regions and major countries manufacturing automobiles, and industry cause and effect analysis. The report offers production and sales facts and analyses market trends and future prospects it also covers the shifts happening in the automobile industry after a series of events for instance: the US-China trade war, COVID-19 outburst, Russia-Ukraine War, Inflation in the US and semiconductor chip shortage.
Global Automobile Market Segmentation
• Global Automobile Market
o North America
o European Union
o Asia Pacific
o Latin America
o Middle East
Companies covered in the Global Automobile Market Report:
• Tesla, Inc.,
• Toyota Motor Corporation,
• Volkswagen Group,
• General Motors Company (GM),
• Daimler AG,
• Honda Motor Company Ltd.,
• Stellantis N.V.
The report helps readers to gain information on the following areas:
• What is the current state of the global automobile industry and how has it performed in the past?
• What is the present growth of global production of passenger cars?
• How did the global car sector respond to COVID-19-led restrictions?
• What effects did COVID-19 have on the demand for and manufacturing of automobiles?
• What is the situation of the North American Automobile industry at the moment?
• How is the auto industry in Asia and the Pacific doing?
• How is the Europe passenger car market coping?
• Which nations are the major producers of automobiles?
• How did the conflict between Russia and Ukraine affect the supply and demand for cars?