Worldwide car sales grew to around** million automobiles in 2024, up from around**** million units in 2023. Throughout 2020 and 2021, the sector experienced a downward trend on the back of a slowing global economy, while COVID-19 and the Russian war on Ukraine contributed to shortages in theautomotive semiconductor industry and further supply chain disruptions in 2022. Despite these challenges, 2023 and 2024 sales surpassed pre-pandemic levels and are forecast to keep rising through 2025 and 2026.

Covid-19 hits car demand

It had been estimated pre-pandemic that international car sales were on track to reach** million. While 2023 sales are still far away from that goal, this was the first year were car sales exceeded pre-pandemic values. The automotive market faced various challenges in 2023, including supply shortages, automotive layoffs, and strikes in North America. However, despite these hurdles, the North American market was among the fastest-growing regions in 2024, along with Eastern Europe and Asia, asauto sales in these regions increased year-on-year.

Chinese market recovers

After years of double-digit growth, China's economy began to lose steam in 2022, and recovery has been slow through 2023. China was thelargest automobile market based on sales with around**** million units in 2023. However,monthly car sales in China were in free-fall in April 2022 partly due to shortages, fears over a looming recession, and the country grappling with the COVID-19 pandemic. By June of that same year, monthly sales in China were closer to those recorded in 2021.

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