Car sales have cooled after experiencing double-digit growth in 2023.

A significant slowdown in global car production is expected in 2024 and 2025. We anticipate global automotive output to increase by just 0.8% this year, following an 11% rise in 2023. The main reasons are tight credit conditions in Western countries and a sluggish Chinese economy. The US has decided to impose high tariffs on Chinese EV imports. In the long term, emerging Asian markets are expected to lead global car production growth.

US automotive market: High interest rates are dampening demand. US car sales are projected to slow to 2.5% in 2024 and 2025, after a 14.6% growth in 2023. Electric vehicle (EV) sales are below expectations due to higher costs, but the long-term outlook remains positive.

Learn more here: https://atradius.ca/reports/industry-trends-automotive-industry-trends-may-2024.html