Planet Earth may see 88.3 million new cars on its roads in 2024: Report

Bolstered by easing of supply-side issues and powered by continuing pent-up demand in the post-Covid phase, sales of new cars across the globe is likely to maintain its momentum in 2024 with a forecast by S&P Global Mobility predicting that the figure could be as high as 88.3 million. For perspective, new car sales in 2023 is likely to close at an impressive 86 million.

The ongoing calendar year has been momentous for most parts while navigating through a few challenges as well. The final figure of 86 million new cars sold the world over, although predictive, is going to be an 8.8 per cent increase as against sales figures from 2022. And as the new year dawns, indications are for a merry 2024 despite some of the present challenges rolling over as well.

Some of the key global markets for new car sales remain China, the US and Europe. India, the world's third-largest vehicle market (in terms of sales) is also a crucial player in the global scene.

China: New car sales

China is the world's largest vehicle market and is home to almost every major global automotive brand as well as an ever-growing number of local players. It is also the world leader when it comes to electric vehicles (EVs). S&P Global Mobility sees persisting incentives on EVs here to be the major driving force for new purchases in the new year. Local production levels are also climbing steadily which means it is nowt just about demand but the demand being met with. It is further predicted that sales of New Energy Vehicles (NEVs - EVs plus hybrids) is going to be bolstered by declining prices of battery and battery components.

United States: New car sales

US, the world's second largest vehicles' market, is on the fast lane. S&P Global Mobility predicts the country could add 15.9 million new cars on its roads in 2024, up by around two per cent from 15.5 million units it is likely to close 2023 with. But there is a cautionary word.

High interest rates, tight credit conditions and slow-to-recede new vehicle prices are some of the stumbling blocks being outlined.

Europe: New car sales

Western and central European countries are likely to see around 14.7 million new cars delivered by the end of this calendar year, a 12.8 per cent year-on-year increase. What has helped manufacturers here is improved production capacities as well as inventory recovery. But much like in the US, there still are concerns which range from economic recession risks and tighter credit conditions to high car prices and easing off of subsidies on EVs. Nonetheless, S&P Global Mobility sees very little reason for the region not to see around 15.1 million new car sales in 2024.