Automotive crisis: global shifts and Europe's struggle against China
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Nowadays the world's economy is like a big blender where problems, needs, objectives, geopolitical balances with wars attached and more, are inserted. In this multifaceted context uncertainty predominates and the automotive world is also part of this welter. The automotive needs strong changes in order not to die as it struggles against modest growth, price wars, cost pressures and increasing cuts in production.
Challenges for the automotive sector: historic brands vs. new players
Against this backdrop, new bold players desiring to carve out a slice of the international market, are acting as counter altars in the global market. Conversely, the manufacturers of historic brands are trying to defend a position painstakingly won over decades of operating in the market.
The European automotive crisis: three key challenges
In Europe the automotive sector is facing a deep crisis depending on three well-defined points:
More than proportional growth of Chinese manufacturers
Sudden change in consumer preferences, especially young people, with regard to the use and especially an eventual purchase of a car
Severe economic penalties for those manufacturers who fail to sell at least 22% electric cars out of their total production.
In short, not an easy task indeed.
Global automotive production decline: China continues to lead in 2024
In 2023 the automotive industry in the world produced 67 million cars, over 85 million in 2022. The global market predicts stagnant volumes for the next three years to come. China has been dominating the market and will continue to do so in 2024, establishing itself as the world leader in the automotive sector, with 35 percent of production amounting to over 26 million units, followed by Japan, U.S. and then India with just under 5 million.
BYD's rise and the changing global landscape
Among the Chinese automakers that are impressing, but also generating concerns in the automotive world, the brand BYD emerges. Despite having stopped producing endothermic cars only in March 2022 to focus on plug-in and electric ones, in July 2024 BYD rose to third place as the world's best-selling brand. Better than BYD, only Toyota and Volkswagen. In the global auto market in 2024 China emerges as the world's top market both in terms of volumes produced and as the top exporting country.
Challenges for the automotive sector: historic brands vs. new players
Against this backdrop, new bold players desiring to carve out a slice of the international market, are acting as counter altars in the global market. Conversely, the manufacturers of historic brands are trying to defend a position painstakingly won over decades of operating in the market.
The European automotive crisis: three key challenges
In Europe the automotive sector is facing a deep crisis depending on three well-defined points:
More than proportional growth of Chinese manufacturers
Sudden change in consumer preferences, especially young people, with regard to the use and especially an eventual purchase of a car
Severe economic penalties for those manufacturers who fail to sell at least 22% electric cars out of their total production.
In short, not an easy task indeed.
Global automotive production decline: China continues to lead in 2024
In 2023 the automotive industry in the world produced 67 million cars, over 85 million in 2022. The global market predicts stagnant volumes for the next three years to come. China has been dominating the market and will continue to do so in 2024, establishing itself as the world leader in the automotive sector, with 35 percent of production amounting to over 26 million units, followed by Japan, U.S. and then India with just under 5 million.
BYD's rise and the changing global landscape
Among the Chinese automakers that are impressing, but also generating concerns in the automotive world, the brand BYD emerges. Despite having stopped producing endothermic cars only in March 2022 to focus on plug-in and electric ones, in July 2024 BYD rose to third place as the world's best-selling brand. Better than BYD, only Toyota and Volkswagen. In the global auto market in 2024 China emerges as the world's top market both in terms of volumes produced and as the top exporting country.