In 2024, the automotive industry has been at the centre of significant changes, amidst pushes for the ecological transition, geopolitical challenges and signs of economic recovery. The “Economic and Market Report Global and EU auto industry: Full year 2024” published on 13th March 2025 by ACEA (European Automobile Manufacturers' Association), outlines the situation, wherein it analyses the trends in vehicle sales, production and trade both worldwide and in Europe, in detail.

The document highlights a fragmented scenario: while some markets exhibit dynamism and growth, others are struggling to recover, reflecting a global economy that is still struggling to resettle after the pandemic crisis.

Europe is breathing again: positive signals on the macroeconomic front

After years of instability and stagnation, 2024 marked a turning point for the EU economy. Growth, albeit moderate, has finally regained momentum.

According to European Commission forecasts, GDP is expected to increase by 1.5% in 2025, driven by stronger domestic consumption and renewed investor confidence.

Inflation continued its downward trajectory to 2.6% in 2024, with a further estimated decline to 2.4% for the current year. The labour market has shown positive signs, with the unemployment rate expected to fall slightly from 6.1% to 5.9% in 2025.

This scenario goes some way to forecasting a more stable and favourable environment for the automotive sector as well, despite persistent gaps between different Member States.

Car sales: a global market in recovery, but with strong regional differences

Globally, new car registrations reached 74.6 million units in 2024, up 2.5% by 2023. But behind this overall positive figure, very different trends are evident in the various world regions.

In Europe as a whole, the automotive market increased by 3.9%, with 16.1 million vehicles sold. However, narrowing the focus to European Union countries alone, growth was more subdued: just +0.8%, or about 10.6 million registrations. A figure that, when compared to the pre-pandemic levels of 2019 (13 million), still shows a gap of 18.4%.

The situation appeared more dynamic in other markets. North America showed good resilience, growing by 3.8%, with the US reaching 12.7 million units (+3.1%). The boost came mainly in the last quarter, when the announcement of the new administration's cut in incentives for electric vehicles boosted purchases. In South America, sales exceeded 3 million units (+6.5%), driven in particular by Brazil, which recorded a 12.5% jump with 1.9 million registered cars.

In Asia, the picture was more complex. China continued to dominate the global market with almost 23 million cars sold (+2.6%), buoyed by favourable fiscal policies that stimulated consumption. It now accounts for 31% of global sales.

In contrast, Japan and South Korea were troubled markets: Tokyo lost 7% of sales due to the gradual end of subsidies and the weakness of the Yen, while Seoul suffered a 5.1% drop. In India, however, the market continued its expansion with +4.8%, reaching 4.4 million units.

Within the European Union, Spain brought a positive surprise with +7.1%, while France (-3.2%), Germany (-1%) and Italy (-0.5%) saw some drops. On the motorisation front, full electric cars overtook diesel for the second time (13.6% vs. 11.9%), confirming their position as the third preferred option. Gasoline remains in the lead with 33.3%, closely followed by hybrids (30.9%).

Vehicle production: Asia takes off, Europe in trouble

2024 saw a slight slowdown in global car production, which stood at 75.5 million units (-0.5 %). At the continental level, performance was very mixed. In Europe, production fell by 4.6%, with -6.2% within the EU. Russia bucked the trend, where production showed a strong recovery (+45%), the effect of a more protected internal market and reduced external competition.

North America closed the year with a 3.2% drop in production, while Asia recorded a 1.5% growth, driven once again by China (+5.2%) and India (+4.7%). Asian leadership in world production was further strengthened, with China achieving a market share of 35.4%.

Within the EU, the heaviest declines were observed in Italy (-43.4%), Belgium (-31.2%), France (-12.4%) and Sweden (-5.1%). Germany contained its losses with -0.4%, while Spain recorded a slight increase (+0.7%), consolidating its role as Europe's second-largest producer.

International trade: European exports hold, but China advances

In 2024, trade in cars was affected by geopolitical tensions and the new balance in international economic relations. The EU recorded a drop in both the value (-8.8%) and volume (-5.2%) of imports, although it maintained a positive export-import balance of more than EUR 81 billion. However, this trade surplus also decreased compared to 2023 (-5.9%).

China was confirmed as the leading supplier of new cars to the European market, with a share of 17.2 %, despite a 12.2 % drop in imports. It is followed by the UK, Japan and Turkey, which together account for almost 60% of the value of cars imported into the EU.

On the export front, however, sales to the US and China fell by 4.6% and 25.5% respectively, a sign of increasing competition from local manufacturers, particularly in China. However, the United States and the United Kingdom remain the main markets for European cars.

Commercial vehicles: new dynamics and declining production

The commercial vehicle segment also experienced a contrasting 2024. Registrations increased by 5.7% in Europe to 2.5 million units, with the EU growing by 8.3%. North America saw a +1.7%, while China saw a 5.9% drop.

In European countries, Spain led the growth with +13.7%, followed by Germany (+8.4%), France (+1.1%) and Italy (+0.9%). Diesel remained the preferred motorisation choice, while electric vans lost share (-9.1%).

On the production front, the situation was more complex: global van production was down 4.6%, with the EU down 5.9%. Only North America (+3.9%) and South America (+2%) showed signs of growth, thanks in particular to Brazil. In Asia, production fell by 9.3%, with significant slumps in Thailand and India.

Truck production also suffered (-8.3%), especially in Europe (-23.6%) and Asia (-7%). On the other hand, South America shone with a record growth of 37.1%, driven again by Brazil. The bus segment instead saw growth of 10.3% globally, with excellent performances in Asia and South America, despite a European decline of 1.4%.

In conclusion: both transition and uncertainty, a sector in full transformation

The ACEA 2024 report portrays an automotive sector in full evolution, where growth is uneven and each market moves according to its own logic.

While on the one hand we see positive signs such as the strengthening of the European economy and the consolidation of sales in Asia and South America, critical production and trade issues persist, especially in Europe.

The energy transition, regulatory changes and geopolitical challenges will continue to profoundly influence the future of the automotive industry, which increasingly looks like a global sector with strong local dynamics.