Allianz – Global Auto Outlook, 2024

The global auto industry is expected to see a slowdown in car registrations and reduced pricing power for manufacturers in 2024, with new auto sales projected to grow by 1.9%. Electric vehicles (EVs) continue to gain traction, with Europe leading the way in sales growth. However, the industry faces challenges such as declining margins, increasing R&D and CapEx ratios, and regional shifts in the market. European automakers are struggling to catch up in the EV market and are losing market share, leading to impacts on employment and insolvencies. Chinese EVs are rapidly growing in sales and production but face hurdles such as a potential price war and geopolitical tensions. In the US, industrial policies are driving the shift to EVs, but cost challenges and political uncertainties remain, with the outcome potentially influenced by future political dynamics. Overall, the industry is undergoing a significant transformation towards EVs, with regional differences impacting the market dynamics. Collaboration among automakers and stakeholders is expected to increase to gain a competitive edge in the evolving market.