Car & Automobile Manufacturing Market

Car & Automobile Manufacturing Market Outlook (2024 to 2034)

The global car & automobile manufacturing market is evaluated to reach a worth of US$ 2,794.56 billion in 2024 and is forecasted to expand at a CAGR of 8.7% to reach US$ 6,457.67 billion by 2034.

The automobile market is expanding due to factors including urbanization, increased infrastructure investment, and the growing demand for luxury passenger cars.

Several countries are starting to enforce stricter emissions standards for new car models because of international initiatives, including the Paris Agreement. Consequently, automakers are beginning to expand their business into the electric mobility space. Through a Mercedes-Benz cooperation, Chinese EV maker BYD challenged Li Auto in August 2023 by releasing its second high-end SUV in a single month.

Through its cooperation with Mercedes-Benz, BYD, which is backed by Warren Buffett, unveiled a new premium sport-utility vehicle (SUV). 90%-owned Shenzhen Denza New Energy Automotive is beginning to taking orders for its plug-in-hybrid N8 model, just one month after launching its previous model, the pure-electric N7, in mainland China.

Due to the country's rapidly expanding population, road traffic congestion, lack of parking spaces, poor mobility infrastructure, lower carbon emissions, especially in electric versions, and the fuel efficiency and lower purchase costs of two-wheelers, the two-wheeler industry in India is experiencing tremendous growth.

Furthermore, because of the growing middle class and the high proportion of young Indians, the two-wheeler category leads the market in terms of volume. India's two-wheeler sales are stimulated by a series of festivals and auspicious times from August to November. Nearly two-thirds of India's population lives in rural areas, where 55% of all two-wheeler sales take place.

• In FY-2022-2023, two-wheeler sales climbed from 1,35,70,008 to 1,58,62,087 units, according to the Society of Indian Automobile Manufacturers (SIAM).
• The Society of Manufacturers of Electric Vehicles reports that sales of electric two-wheelers grew exponentially from 53,258 units in April 2022 to 86,194 units in March 2023.
• Ducati announced plans to launch eight new motorbike models in India in January 2024. In 2024, the popular Italian luxury motorbike manufacturer is planning to open two additional stores in India. The Panigale V4 SP2 30° Anniversario 916, Panigale V4 Racing Replica 2023, Multistrada V4 RS, Diavel for Bentley, DesertX Rally, and Monster 30° Anniversario are some of the new Ducati products that are planned to be displayed at the Ducati World Premiere held in 2024.

Report Attributes	Details
Car & Automobile Manufacturing Market Size (2024E)	US$ 2,794.56 Billion
Forecasted Market Value (2034F)	US$ 6,457.67 Billion
Global Market Growth Rate (2024 to 2034)	8.7% CAGR
East Asia Market Growth Rate (2024 to 2034)	10.09%
North America Market Value (2034F)	1,172.79 Billion
Commercial Vehicles Segment Value (2034F)	US$ 1,092.73 Billion
Cars Segment Value (2034F)	US$ 2,474.25 Billion
Key Companies Profiled	TATA Motors; Mahindra & Mahindra; Bajaj Auto; General Motors; Hyundai Motor Limited; Ford; Jaguar Inc.; BYD Auto; Eicher; Volkswagen

What is Becoming a Major Success Factor for Manufacturers?

“Escalating Population Growth in Billions and Globalization Primary Growth Factors”

The main factors driving the increase in commercial vehicle sales include rapid population growth, urbanization, infrastructural development, and industrial expansion. Jobs in sectors, including construction, mining, and tourism are created by the growing industrial sector, especially in potentially high-growth countries. Due to the increased number of commuters brought about by employment availability, there is a high demand for personal vehicles or public transit. Small, medium, and big commercial vehicles are becoming increasingly necessary for logistics and shipping as e-Commerce is growing.

The logistics sector now offers customer-centric solutions rather than only services. The need for commercial cars for transportation is increasing dramatically as a result. To fulfill weight restrictions, manufacturers are creating new vehicle designs, reducing size and load factors, and altering existing vehicles. Urbanization is helping the mining and construction industries. Technologically advanced freight trucks are in high demand due to new residential projects, smart city initiatives, and the expanding need for flyovers and bridges.

Enhancing transportation and logistics industry also requires e-Commerce and digital change. Infrastructure development is encouraged by increased industrialization. The growing popularity of telematics integration, shared mobility, and consumer demand for customized transportation solutions are all important elements influencing the commercial vehicle industry's growth.

Several Original Equipment Manufacturers are launching commercial vehicles with connectivity features, including accident warnings, weather reports, traffic data, and roadwork updates after researching the advantages of telematics and connectivity in revolutionizing logistics and transportation operations. Sales of commercial vehicles are thus probably increasing, thereby contributing to the overall expansion of the car & automobile manufacturing market growth.

“EV Vehicles Also Gaining Popularity Thus Contributing to Market Success”

In recent years, the market for electric vehicles is growing significantly than ever. The market for electric vehicles is growing because of ongoing government assistance, advancements in battery technology, better infrastructure for charging them, automakers' decision to electrify their fleets, and shifting customer tastes. Several major manufacturers said in 2021 that they would be creating new product lines and renovating existing manufacturing facilities to make the switch to an all-electric future.

One of the top automakers, Toyota Motor Corporation (Japan), for example, declared the introduction of 30 BEV (battery electric vehicle) models and set a target of selling 3.5 million EVs annually by 2030. Similarly to this, Ford Motor Company (US), a multinational automaker, declared that by 2026, a third of its sales are coming from electric vehicles, and by 2030, that percentage would rise to 50%.

Which Factors are Restricting Market Growth Extensively?

“Manufacturing Requires Too Much Skilled Workforce Making it a Restraining Factor”

Complex automotive manufacturing components need to be designed and manufactured using cutting-edge engineering and technology. The initial cost of installation is increased since these parts are made to carry out certain functions in the automobile sector. For example, a robot utilized in the automotive sector is sensors, lenses, software, and smart cameras-all of which are somewhat more expensive and need significant financial outlays.

An industrial robotic system is costing anywhere between USD 20,000 to USD 150,000. Automation is an expensive investment for SMEs, particularly those involved in low-volume manufacturing, due to the cost of industrial robots, integration fees, and peripherals, such as end effectors and vision systems.

Country-wise Insights

The automobile is becoming a very important part of people’s lives as they have to travel for work and other traveling purposes. This component is boosting automobile sales around the world in some of the countries including the United States, Canada, Mexico, China, and South Korea. Each of these countries is working on its automobile laws and functioning to grab a higher car & automobile manufacturing market share.

Why is the United States Becoming a Strong Market Player in the North American Region?

“Huge Land Area With Vast Amount of Working Class People Thrusting Demand”

Attribute	United States
Market Value (2024E)	US$ 477.66 Billion
Growth Rate (2024 to 2034)	8.27% CAGR
Projected Value (2034F)	US$ 1,057.47 Billion

The United States market is gaining prominence in the North American automobile manufacturing sector due to its enormous land area and significant working-class population. This vast expanse allows for diverse manufacturing facilities, which is scaling production to meet the growing demand for vehicles.

Further, the United States consists of a well-established supply chain infrastructure, enabling manufacturers to source materials efficiently and cost-effectively. The increase in consumer preferences for country-made vehicles and investment in electric and autonomous technologies also drives innovation and competitiveness.

Moreover, strong labor unions and a skilled workforce contribute to higher-quality production processes, making United States cars more appealing to consumers. Thereby, the automotive industry in the country is well-poised for sustainable growth and has become a leader in the North American region.

How Manufacturers in China are Making Huge Profits?

“Large Presence of Aftermarkets and Skilled Workforce Helping in Supplying Economic Automobile Components”

Attribute	China
Market Value (2024E)	US$ 477.88 Billion
Growth Rate (2024 to 2034)	11.34% CAGR
Projected Value (2034F)	US$ 1,399.36 Billion

Car and automobile manufacturers in China are generating significant profits thanks to a robust presence in aftermarket services and a highly skilled workforce specializing in cost-effective production. The extensive aftermarket industry supports manufacturers by providing essential components at lower prices, allowing for higher margins on vehicles sold. Furthermore, China's investment in technology and innovation is leading to advancements in production efficiency, enabling manufacturers to reduce overhead costs.

This competitive advantage is complemented by a large domestic consumer base, heavily supported by government policies fostering electric vehicles and green technology. With access to a vast labor pool, manufacturers are maintaining low labor costs while ensuring high-quality standards. This combination of benefits positions automobile makers in China to dominate both domestic and international markets, translating into impressive profitability for the industry as a whole. Thus resulting in an increasing car & automobile manufacturing market size.

Category-wise Evaluation

Some of the products and services are introduced in the market by manufacturers to gain a large audience to buy the product. Some of the significant and popular ones include SUVs and crossovers, cars, and commercial vehicles.

Which Products and Services are Among the Most Profitable Segments for Auto Dealers?

“SUVs and Crossover Becoming the Most Valuable Segment Compared to Commercial Vehicles Segment”

Attribute	SUVs & Crossover
Segment Value (2024E)	US$ 1,207.09 Billion
Growth Rate (2024 to 2034)	9.13% CAGR
Projected Value (2034F)	US$ 2,890.68 Billion

SUVs and crossovers are emerging as the most profitable segments for auto dealers. Their popularity stems from the versatility and spaciousness they offer, appealing to a wide array of consumers from families to outdoor enthusiasts. SUVs often come equipped with advanced technology and luxury features, which further enhances their appeal and allows for higher markups. In contrast, the commercial vehicle segment typically offers lower profit margins, as these vehicles are often purchased in bulk for business use and are priced more competitively.

Dealers are finding more profit in ancillary services, such as financing options and maintenance packages, which provide additional revenue streams. As consumer preferences lean towards larger vehicles, auto dealers who focus on promoting and stocking SUVs and crossovers are projected to witness more significant returns on their investments.

What are the Major Markets Prominently Desired by Auto Dealers to Make Final Sales?

“Household with Developing Markets Most Favorite for Automobile Manufacturers”

Attribute	Households (Developing Markets)
Segment Value (2024E)	US$ 1,195.11 Billion
Growth Rate (2024 to 2034)	9.27% CAGR
Projected Value (2034F)	US$ 2,899.2 Billion

Auto dealers are increasingly targeting emerging household markets, which are becoming highly attractive for automobile manufacturers. These potentially high growth markets often consist of a growing middle class with increasing disposable income, making car ownership more accessible. Countries in regions such as Southeast Asia, Africa, and Latin America are showing a rising demand for personal vehicles, particularly compact cars and SUVs, which are favored for their affordability and practicality.

Urbanization trends in these regions also play a crucial role in shaping consumer preferences, as individuals seek reliable transportation solutions for commutes and family needs. Auto dealers recognize that these markets present an opportunity for sustained growth and profitability, especially as local economies evolve and the population's purchasing power increases. By focusing on these markets, dealers are positioning themselves to capitalize on future trends in vehicle preference and ownership. This is making the car & automobile manufacturing trend stronger.

Market Competition

Key players in the car & automobile manufacturing market are focusing on research and development to bring new features to entice customers. Some of these features and functions include car rental and electric car products.

• The center airbag, a new safety element added to the Volkswagen GOLF Model in October 2022, helps shield the heads of those seated in the front seats from potential contact in the case of a side impact. To further improve safety, a second standard lap belt tensioner for the front row has been installed.
• Ford revealed its major moves toward an all-electric future in Europe in March 2022. The company plans to sell over 600,000 electric vehicles in Europe by 2026 and will launch three new electric passenger cars and four new electric commercial vehicles by 2024.

Fact.MR provides detailed information about the price points of key players in the car & automobile manufacturing market positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Segmentation of Car & Automobile Manufacturing Market Research

• By Product & Services :

  • SUVs & Crossovers
  • Cars
  • Commercial Vehicles

• By Major Markets :

  • Households (Developing Markets)
  • Households (Mature Markets)
  • Businesses (Mature Markets)
  • Businesses (Developing Markets)

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa