Global car sales to see growth slowdown in 2024, EVs to continue momentum: Study
- Global car sales are expected to witness a slowdown in sales growth in 2024, owing to weakened economic conditions and higher interest rates.
Global passenger vehicle sales are anticipated to experience a slowdown in growth in 2024, influenced by weakened economic conditions and higher interest rates, claims a study by Fitch Ratings. This projection comes at a time when automobile manufacturers around the world are navigating through various challenges and disruptions. However, despite the challenges, the study also showed optimism about the resilience of carmakers in the Asia-Pacific region, thanks to robust balance sheets.
The rating agency anticipated that global sales of passenger vehicles would see a slowdown in growth in 2024. The agency has blamed this projection on weakened economic conditions and higher interest rates. It stated that the economic headwinds and tightening interest rate environment would decelerate the global vehicle sales growth.
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While the overall passenger vehicle market across the world will be witnessing a sluggish growth pace in 2024, new energy vehicles including greener and cleaner powertrain propulsion-powered vehicles will see sales surge. Interestingly, this comes as a continuation of 2023, as in the current calendar year as well, new energy vehicles are witnessing a surge in sales but the overall sales of PVs are slow. The rating agency stated that passenger vehicle sales are experiencing a flat to low single-digit growth in 2023.
Speaking about electric vehicles, the agency said that this segment will continue robust growth. Speaking about different markets, the agency has said that electric vehicles in China will continue the impressive growth momentum of 2023, but the US and other major markets like Europe will see a slowdown in sales growth for these vehicles. It also forecasted that the Chinese electric vehicle market would see intense price competition in 2024. This will be driven by aggressive pricing strategies of local electric vehicle manufacturers and efforts by global automakers who have set up joint venture brands in the country to gain traction in EV sales.
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