ACEA – Economic and Market Report, Dec 2023

Global car sales have experienced a strong recovery, growing by 8.9% in the first three quarters of 2023 as supply chain challenges gradually ease. The European market has seen a robust surge, with car registrations increasing by 20.4% from January to September, driven by growing demand. After facing declines in 2022, the markets in Russia and Ukraine are now on a slow path to recovery, with impressive growth rates of 45.2% and 56.3% respectively. North America has also seen resilient growth in car sales, with a substantial 15.5% increase in the first three quarters of the year, despite challenges such as inventory constraints, inflation, and rising interest rates. South America has maintained stable demand for cars, with Brazil, the largest market in the region, registering a modest 8% growth. Japan has witnessed a remarkable 17.8% increase in car sales, while South Korea recorded more modest growth of 6.6% due to the termination of tax relief support. China, on the other hand, has experienced a stagnant market with a marginal increase of only 0.2% in car sales. The Indian car market has shown growth of 8.8% driven by factors such as preference for personal mobility and the introduction of new models. In the EU, car registrations have significantly increased by 16.9% in the first three quarters of 2023, with most of the region's markets recording gains. Despite a projected 12% growth in car registrations for 2023, volumes are expected to remain relatively low compared to 2019. Looking ahead to 2024, a slower pace of growth is anticipated, with an approximate 2.5% increase in new EU car registrations.