18 April 2025  - According to Inovev estimates, the volume of global automotive production (PC+UV) remained stable in 2024 compared to 2023, with a production volume of 91.5 million vehicles (passenger cars, light utility vehicles, heavy and medium utility vehicles and buses), which tends to demonstrate that carmakers continued to destock last year, but less than the previous year, the global automotive market having grown by 1.7% last year.
- Europe and Asia produced fewer vehicles than the previous year. In Asia, the increase recorded in China (+1,115,000 units) could not offset the decline recorded in Japan (-685,000 units), Thailand (-375,000 units), Indonesia (-205,000 units), and Korea (-145,000 units). The two Americas recorded a slight increase (around +1.5%). Finally, the most dynamic region is Russia, which increases from 615,000 units in 2023
to 756,000 in 2024, thereby compensating for the temporary halt in production in Serbia, Ukraine, and Belarus.
But we are still far from returning to the levels reached before 2022. Please sign-up/sign-in on the left to get access to the complete analysis. 18 April 2025  - German carmakers (Volkswagen Mercedes, BMW) entered the Chinese market in the 1980s and 1990s. The Volkswagen group immediately took the leading position over the foreign and Chinese competition. It went as far as producing more than 4 million cars per year, with peak production reaching 2018. From 2019-2020, the context completely changed as the demand for electric cars (as well as supply) began to explode, a consequence of a Chinese strategy aimed at promoting electric vehicles, for which Chinese carmakers (primarily BYD ) where prepared for decades with heavy investments, as well as the American Tesla, which was then ahead of other carmakers in this market.
- Volkswagen's sales declined sharply at that time, dropping from 4 million to 3 million units in two years (between 2019 and 2021). The group managed to resist for two years (between 2021 and 2023), mainly thanks to the strong sales performance of Audi, the group's premium subsidiary. But the year 2024 saw a further decline for the Volkswagen group, to 2.75 million units.
- Independent German premium carmakers Mercedes and BMW managed to make progress through 2023, thanks to their image as makers of prestigious cars, a category in which Chinese carmakers were not yet very present. 2024 saw their first real decline facing the development of Premium Chinese brands.
- Overall, the market share of the Volkswagen, Mercedes and BMW groups has gradually fallen from 20% in 2017 to 16% in 2024, and the coming years are likely to be even more difficult, as Chinese customers increasingly turn to Chinese brands that have made enormous progress over the past ten years. Please sign-up/sign-in on the left to get access to the complete analysis.
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