This briefing examines how the automotive industry is performing globally and in the largest countries in terms of automotive output. The report also provides data for production, market size, imports, exports, industry costs, industry profitability and number of companies. The industry and market overview provide benchmarks against other countries in the region.
This report comes in PPT.
The global automotive industry is forecast to recover from the supply shocks experienced over 2020-2022, but will experience slower growth over the period to 2027 compared to 2017-2022. Slower global economic growth, weaker consumer demand for new vehicles in the largest markets, and continuing cost pressures will continue to impact the industry.
The industry is forecast to continue to feel significant cost pressures because of rising labour costs and the switch to electric vehicles. Ageing populations and low unemployment rates in the largest economies will continue to increase operating costs, while the production of electric vehicles will require higher investment and R&D costs.
Supply chain optimisation efforts are expected to continue, as a result of rising geopolitical tensions. Car manufacturers are anticipated to create smaller networks of semi-independent suppliers to reduce risks. In addition, car manufacturers are expected to increase vertical integration efforts and collaborate more with mining, chemical and technology companies.
Rising operating costs and the need for large-scale investment in electric vehicles are expected to continue to drive consolidation in the automotive industry. To share investment costs, companies are expected to form alliances, and intensify acquisitions of smaller component suppliers.
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