Automotive Industry Trends May 2024

Market Monitor

  • Brazil,
  • Canada,
  • China,
  • Czech Republic,
  • France,
  • Germany,
  • India,
  • Indonesia,
  • Italy,
  • Japan,
  • Mexico,
  • Netherlands,
  • Singapore,
  • South Korea,
  • Spain,
  • Sweden,
  • USA,
  • United Kingdom,
  • Vietnam
  • Automotive/Transport

14th 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.

Related documents

Disclaimer

Each publication available on or from our websites, such as, but not limited to webpages, reports, articles, publications, tips and helpful content, trading briefs, infographics, videos (each a “Publication”) is provided for information purposes only and is not intended as a recommen¬dation or advice as to particular transactions, investments or strategies in any way to any reader. Readers must make their own independent decisions, commercial or otherwise, regarding the information provided. While we have made every attempt to ensure that the information contained in any Publication has been obtained from reliable sources, Atradius is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information in any Publication is provided ’as is’, with no guarantee of completeness, accuracy, timeliness or of the results obtained from its use, and without warranty of any kind, express or implied. In no event will Atradius, its related partnerships or corporations, or the partners, agents or employees thereof, be liable to you or anyone else for any decision made or action taken in reliance on the information in any Publication, or for any loss of opportunity, loss of profit, loss of production, loss of business or indirect losses, special or similar damages of any kind, even if advised of the possibility of such losses or damages.