Global production of automobiles faced a huge loss in recent years of more than 10 million units in 2021. The situation improved a bit in 2022 to almost 3.5 million units. But if you think that the year 2023 and the coming 2024 will witness a boost in automobile production, you’re wrong! Though achieving gradual and sizable improvements, recent global market analysis and announcements from big automakers hint that the semiconductor supply chain issues are yet to be fully resolved, possibly hampering the production output in 2023 and 2024 too.
The Forecast
According to the market analysis forecast, automobile production this year is likely to grow by 4.9%, which is still far below previous market levels. Especially, in comparison to the year 2017, when global light vehicle production reached a peak with more than 95.6 million units. While there’s no denying that the global automobile industry is recovering gradually and steadily, returning to its full potential and meeting that benchmark won’t be possible before 2028. According to experts, the vehicle production market will slowly head toward the glass ceiling of 100 million units, which is likely to be broken in 2033.
The Asia-Pacific Market
The Asia-Pacific market dominates a large part of the global vehicle production market. In 2023, the Asia-Pacific market is expected to produce 55.8% of the world’s vehicle output. Now, to meet this goal, all eyes are currently on China. As China usually makes up the largest share of vehicle production by far, a strong recovery in the market of China is necessary to propel the entire Asia-Pacific region forward. Presently, other important vehicle-producing countries in this area like Japan, South Korea, and India are also struggling to grow. But according to market experts, if China can get back to record levels showing steady growth over the next few years, this automobile production region can make a deserving transition from a domestic supply market to an international export hub.