In this article, we will be taking a look at the 20 largest automotive markets in the world. You can skip our detailed discussion of the current state of the auto market and see the 5 Largest Automotive Markets in the World here.
The Global Automotive Industry: A Brief Overview
Providing millions of jobs and supporting numerous sectors, the global automotive industry plays a crucial role in the global economy. According to a report by Towards Automotive, the global automotive industry was estimated to have reached a value of $4.07 trillion in 2023. Looking forward, the market is expected to grow at a compound annual growth rate (CAGR) of 5.66% from 2024 to 2032 to reach a value of $6.67 trillion by the end of the forecast period.
The global automotive industry has experienced significant shifts in recent years, driven by the rapid adoption of fuel-efficient cars and electric vehicles. China is heavily investing in electric vehicle (EV) production. From 2009 to 2023, the Chinese government has invested a total of $230.8 billion to support the growth and development of its electric vehicle industry, as revealed by an analysis published by the Center for Strategic and International Studies (CSIS).
Chinese electric vehicle manufacturers are emerging as significant global players, challenging automakers around the world. These Chinese companies are shaking up the competitive landscape, both within China and globally, by offering affordable and technologically advanced electric vehicles. On April 3, Bloomberg reported that Tesla, Inc (NASDAQ:TSLA) is facing significant challenges in China, the largest EV market, due to intense competition from local rivals. The company’s market share in China has shrunk from 10.5% in the first quarter of 2023 to around 6.7% in the fourth quarter, ending in December 2023. Chinese EV makers like BYD Company Limited (SHE:002594), NIO Inc. (NYSE:NIO), XPeng Inc. (NYSE:XPEV), and Li Auto Inc. (NASDAQ:LI) are offering newer models with more advanced features compared to Tesla, Inc’s (NASDAQ:TSLA) relatively unchanged Model 3 and Model Y. BYD Company Limited (SHE:002594), in particular, has a wide range of vehicles catering to different price points. At the more affordable end, it offers the Seagull hatchback, which features a 10-inch rotating touchscreen and is priced under $10,000. On the higher end, BYD Company Limited (SHE:002594) has the Yangwang U8 plug-in hybrid SUV, which boasts an impressive 1,200 horsepower, can float on water, and can perform a 360-degree “tank turn”.
The transition to EVs may also start gaining significant momentum in the US. On June 7, The New York Times reported that the Biden administration has unveiled new fuel efficiency standards as part of its strategy to accelerate the transition to electric vehicles in the US. The Transportation Department’s regulations require American automakers to improve the average fuel economy of their passenger cars to 65 miles per gallon by 2031, up from the current 48.7 miles per gallon. The Environmental Protection Agency (EPA) also recently introduced strict new limits on tailpipe emissions, aiming to ensure that the majority of new passenger cars and light trucks sold in the US by 2032 are electric or hybrid vehicles. American automakers will be looking to increase both the number of all-electric and hybrid vehicles they sell, as well as improve the fuel efficiency of their conventional cars.
A Look at General Motors Company’s EV Ambitions
General Motors Company (NYSE:GM) is an American multinational automotive manufacturing company that ranks high among the world’s biggest car manufacturers by revenue. The company is focused on advancing an all-electric future by leveraging its Ultium battery platform to power a diverse range of electric vehicles, from mass-market to high-performance models. General Motors Company (NYSE:GM), its subsidiaries, and its joint venture entities market vehicles under the Chevrolet, Buick, GMC, Cadillac, Baojun, and Wuling brands. GM is one of the best car stocks to buy right now.
General Motors Company (NYSE:GM) is making significant progress in its EV business, ramping up production and improving profitability. In its Q1 2024 earnings report, the company reported that it has increased its battery module production by 300% over the past six months. General Motors Company (NYSE:GM) is on track to double its current EV production capacity by the end of the summer. GM’s EV sales have also seen a sharp rise, with a 21% year-over-year increase in retail customer deliveries. The all-electric Cadillac LYRIQ, for instance, outsold all European luxury brand EVs in the first quarter of 2024. Since mid-March, GM has also been delivering the Chevrolet Blazer EV with updated and improved software, benefiting from the company’s focus on end-to-end software improvements.
Looking ahead, the Chevrolet Equinox EV is expected to arrive in showrooms in the second quarter of 2024 as the most affordable long-range EV in the US. General Motors Company (NYSE:GM) also plans to introduce more affordable trim levels for the Chevrolet Equinox EV, Blazer EV, and Silverado EV in the second half of 2024, aiming to drive volume and market share growth. GM also aims to expand its Cadillac EV lineup with the OPTIQ and Escalade IQ later this year.
Furthermore, in the first quarter of 2024, General Motors Company (NYSE:GM) and its joint ventures delivered more than 441,000 vehicles in China. This included a significant increase of 42.6% in sales of new energy vehicles (NEVs), reaching a record high of more than 128,000 units. GM plans to launch a record number of NEV models in 2024 in China, leveraging a combination of global and local solutions, including new plug-in hybrid technologies, to cater to the diverse needs of consumers.
Now that we have discussed what’s going on in the automotive industry, let’s take a look at the 20 largest automotive markets in the world.
An auto warehouse filled with newly acquired used cars.
Methodology
In this article, we compiled a list of the 20 largest automotive markets in the world. To collect data for our list, we consulted the International Organization of Motor Vehicle Manufacturers (OICA). This database provided us with details on the registrations or sales of new passenger cars in markets around the world in 2023. We used the latest data available in their dataset to rank the 20 largest automotive markets in the world, which are listed below in ascending order of their total passenger car sales in 2023.
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20 Largest Automotive Markets in the World
20. Poland
Total Passenger Car Sales (2023): 475,032
Poland, a country in Central Europe, ranks among the top 20 largest automotive markets in the world. Poland is a significant manufacturing center for cars, car parts, and components. The automobile industry in Poland is vital to the country’s economy. In 2023, Poland saw the sale of 475,032 passenger cars.
19. Belgium
Total Passenger Car Sales (2023): 476,674
Belgium is a country in Western Europe that ranks high among the countries that import the most cars in the world. According to the latest data, Belgium recorded a total of 476,674 passenger car sales in 2023.
18. Mexico
Total Passenger Car Sales (2023): 598,091
Mexico is a major passenger vehicle manufacturer. A number of major car companies have car manufacturing and production facilities located in the country. Mexico also ranks high among the countries with the most car exports in the world. In 2023, Mexico’s passenger car sales reached 598,091 units.
17. Malaysia
Total Passenger Car Sales (2023): 604,000
Malaysia is a country in Southeast Asia that ranks 17th on our list of the largest automotive markets in the world. Malaysia has one of the largest automotive sectors in Southeast Asia. Malaysia’s passenger car sales in 2023 stood at 604,000 units.
16. Saudi Arabia
Total Passenger Car Sales (2023): 645,723
Saudi Arabia is the largest country in the Middle East. It has a significant auto market, with a high demand for luxury vehicles. According to the latest data, Saudi Arabia recorded a total of 645,723 passenger car sales in 2023.
15. Indonesia
Total Passenger Car Sales (2023): 779,326
Indonesia, a country in Southeast Asia, ranks among the top 15 on our list of the largest automotive markets in the world. It is one of the most populated countries in the world. In 2023, Indonesia saw the sale of 779,326 passenger cars.
14. Australia
Total Passenger Car Sales (2023): 890,823
Australia, comprising the mainland of the Australian continent and numerous smaller islands, is the sixth largest country in the world. The country’s automotive industry relies heavily on imports. Australia imports most of its vehicles from Germany, Japan, and Korea. In 2023, Australia’s passenger car sales reached 890,823 units.
13. Spain
Total Passenger Car Sales (2023): 949,359
Spain is a country located in Southwestern Europe. The automotive industry is a strategic sector for Spain’s economy, and the country is one of the largest automakers in Europe. According to the latest data, Spain recorded a total of 949,359 passenger car sales in 2023.
12. Turkey
Total Passenger Car Sales (2023): 967,341
Turkey, officially the Republic of Türkiye, is a country located in West Asia and Southeast Europe. It ranks 12th on our list of the largest automotive markets in the world. In 2023, Turkey’s passenger car sales reached 967,341 units.
11. Russia
Total Passenger Car Sales (2023): 1,049,917
Russia, a country spanning Eastern Europe and North Asia, is the largest country in the world by area. Home to one of the largest automotive markets in the world, Russia recorded a total of 1,049,917 passenger car sales in 2023.
10. South Korea
Total Passenger Car Sales (2023): 1,489,363
South Korea ranks among the top 10 largest automotive markets in the world. In 2023, South Korea saw the sale of 1,489,363 passenger cars. Hyundai Motor Company (KRX:005380) and Kia Corporation (KRX:000270) are some of the biggest South Korean automotive manufacturers.
9. Italy
Total Passenger Car Sales (2023): 1,565,331
Italy is a country in Southwestern Europe. The country’s automotive sector is a major industry and a large employer. According to the latest data, Italy recorded a total of 1,565,331 passenger car sales in 2023.
8. Brazil
Total Passenger Car Sales (2023): 1,721,400
Brazil, in South America, is the fifth-largest country by area. It is also one of the most populated countries in the world. Home to one of the biggest car markets in the world, Brazil saw the sale of 1,721,400 passenger cars in 2023.
7. France
Total Passenger Car Sales (2023): 1,774,723
France is a developed country in Western Europe that is home to one of the largest automotive markets in the world. It imports cars from various countries including two of its neighbors, Belgium and Germany. In 2023, France saw the sale of 1,774,723 passenger cars.
6. United Kingdom
Total Passenger Car Sales (2023): 1,903,054
The United Kingdom is an island nation in Northwestern Europe that ranks 6th on our list of the largest automotive markets in the world. According to the latest data, the United Kingdom recorded a total of 1,903,054 passenger car sales in 2023.
5. Germany
Total Passenger Car Sales (2023): 2,844,609
Germany ranks among the top 5 largest automotive markets in the world. The country’s automotive industry is one of the leading automotive industries in the world, and it plays a crucial role in the German economy. Germany is also a major exporter of cars. In 2023, Germany’s passenger car sales reached 2,844,609 units.
4. United States
Total Passenger Car Sales (2023): 3,116,647
The United States is one of the biggest car markets in the world. It is the third most populated country while also being one of the largest countries in the world by area. The US imports light vehicles and automotive parts to meet consumer demand. In 2023, the United States saw the sale of 3,116,647 passenger cars.
3. Japan
Total Passenger Car Sales (2023): 3,992,727
Japan is an island country in East Asia that ranks among the top 3 on our list of the largest automotive markets in the world. Japan is home to a number of companies that manufacture cars. Japan’s passenger car sales reached 3,992,727 units in 2023.
2. India
Total Passenger Car Sales (2023): 4,101,600
India, a country in South Asia, is the most populated country in the world. It is the 2nd largest automobile market in the world in terms of sales. According to the latest data, India recorded a total of 4,101,600 passenger car sales in 2023.
1. China
Total Passenger Car Sales (2023): 26,062,824
China tops our list of the largest automotive markets in the world. The country’s automotive industry is also the biggest in the world in terms of automobile unit production. Over the years, the Chinese automotive industry has seen significant growth and China has become a global leader in electric vehicle manufacturing. As the largest automotive market in the world, China saw the sale of 26,062,824 passenger cars in 2023.
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