Global New Car Sales Expected to Hit 88.3 Million Units in 2024

As 2024 draws near, S&P Global Mobility forecasts a significant increase in new car sales worldwide. According to the estimation, 88,3 million new vehicles will make it to the global market next year, representing a 2.8% year-over-year increase. Supply chains and demand are building pace, bolstering this optimistic forecast, as the auto industry continues to revive.

Projections for 2023 are similarly encouraging, with an expected 8.9% increase in global passenger vehicle sales compared to the previous year, reaching nearly 86.0 million units. This upswing is attributed to ongoing output gains as supply chains normalize, and efforts to replenish inventory continue to stimulate demand.

Related: EVs to Continue Dominate China’s Auto Market in 2023 as Tax Rebates Resume

In addition, S&P Global Mobility believes that electrification will continue to grow despite uncertainty in the US and Europe. Several automakers, aware of the difficulties in increasing the production of more reasonably priced electric vehicles (EVs), have reaffirmed their dedication to electrification in the upcoming years.

By predicting that global sales of battery-electric vehicles (BEVs) will reach 13.3 million units in 2024, or an estimated 16.2% of global passenger vehicle sales, the agency dispels any doubts over the fall in electric vehicle sales. This is in line with a projected 12% market share of 9.6 million BEV sales in 2023. China continues to be the world’s largest automobile market, with sales of about 30 million cars expected in 2023, of which 26% will consist of electric vehicles.

Related: China Implements a Multi-Pronged Strategy to Drive NEV Boom

On the other hand, Pakistan, which is the fifth most populous country in the world will have its contribution to global vehicle production with around 0.15 million units in 2023. That number however, is expected to be further reduced in 2024 as the local auto industry continues to battle with various challenges including economic & political instability, rising inflation, depreciating currency value, rising vehicle prices, stringent & unrealistic auto financing conditions, high-interest rates, depleting purchasing power of the masses, and a minuscule vehicle production rate hampered by the restrictions imposed by the government on the import of CKD parts.

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