Automotive industry

Worldwide motor vehicle production amounted to more than 92.5 million units in 2024. Some 73 percent of the motor vehicle production was generated by the passenger cars segment, amounting to almost 67.7 million units.

China is the world’s largest producer and consumer of passenger cars. This means that any change in production and sales in the Chinese automotive market will be noticeable in global figures. The Chinese economy has grown in tandem with vehicle production and sales. However, between 2016 and 2019, this growth slowed. Motorists in China have been unable to afford new cars due to lower employment levels and higher prices that came as a result of higher tariffs. Between December 2019 and March 2020, the economy was hit hard by the outbreak of the coronavirus pandemic. The automotive market cratered in February but rebounded soon thereafter. Chinese motorists purchased about 26 million passenger cars and more than four million commercial vehicles in 2023.

The coronavirus outbreak brought many nations and their economies to a grinding halt in 2020. The effect on the motor vehicle industry was particularly noticeable. Many manufacturing facilities across the world were shut down to prevent the spreading of the virus. However, the industry has partially recovered since, showing an upward production output trend, which remains below the pre-pandemic levels.

In terms of revenue, Toyota and Volkswagen were the leading automakers worldwide as of May 2024. In terms of vehicle sales , Toyota and Volkswagen are also counted among the most successful automakers worldwide.

Before the coronavirus crisis of 2019-2020, the global automotive industry was hit hard by the financial crisis of 2008-2009, and General Motors declared its roughly 91 billion U.S. dollar bankruptcy following the crisis. In 2009, passenger car sales slumped in most markets, except for China, which emerged as the key sales market for passenger cars.

Chinese manufacturers cut the cord from their joint venture partners from other parts of Asia and the Western world a long time ago, and the global automotive industry has begun to feel the impact Chinese motor vehicles and parts manufacturers have. In 2020, the car market was in free-fall again. However,  China was also affected this time. The global automotive chip shortage further impacted the industry in 2021 and 2022, leading to a slump in vehicle inventory despite rising demand. By 2023, some improvements were recorded on the global level. 

The global autonomous car market was valued at over 41 billion U.S. dollars in 2024. The market is expected to grow in the following years, reaching a size of nearly 115 billion U.S. dollars in 2029.

Fully autonomous vehicle technology is extremely complex. In the United Kingdom, it is expected that 73 percent of all cars will have some level of autonomy (Levels 1-3) before fully autonomous vehicles are even starting to enter the market in 2025. One reason behind this is the lack of consistent 5G or high-speed internet to allow the self-driving cars to communicate with each other and to gather information about driving conditions and traffic jams or potential obstacles blocking the road. Another reason is that some vehicles require extremely detailed maps to navigate safely.

Overcoming technological hurdles is not enough for autonomous vehicles to take off. Securing public support is vital as well. People need to feel comfortable about riding in an autonomous vehicle in order to use them and buy them. Although over 40 percent of customers worldwide would be willing to use fully autonomous or semi-autonomous cars, they still have some concerns. More than half of the customers are worried about the safety of autonomous cars and over 30 percent are not sure whether the technologies necessary for autonomous vehicles to operate are advanced enough.

The global autonomous car market was valued at over 41 billion U.S. dollars in 2024. The market is expected to grow in the following years, reaching a size of nearly 115 billion U.S. dollars in 2029. 

Fully autonomous vehicle technology is extremely complex. In the United Kingdom, it is expected that 73 percent of all cars will have some level of autonomy (Levels 1-3) before fully autonomous vehicles are even starting to enter the market in 2025. One reason behind this is the lack of consistent 5G or high-speed internet to allow the self-driving cars to communicate with each other and to gather information about driving conditions and traffic jams or potential obstacles blocking the road. Another reason is that some vehicles require extremely detailed maps to navigate safely.

Overcoming technological hurdles is not enough for autonomous vehicles to take off. Securing public support is vital as well. People need to feel comfortable about riding in an autonomous vehicle in order to use them and buy them. Although over 40 percent of customers worldwide would be willing to use fully autonomous or semi-autonomous cars, they still have some concerns. More than half of the customers are worried about the safety of autonomous cars and over 30 percent are not sure whether the technologies necessary for autonomous vehicles to operate are advanced enough.