Tesla, BYD, Toyota and Mercedes-Benz emerged as the big winners in the global automotive industry last year, as China extended its position as the dominant market for new vehicle sales.
The Tesla Model Y proved perfect for exploiting the growing global demand for family-friendly electric transport, while Chinese giant BYD had three models in the global EV top 10 – a better result than any European firm recorded. “The Model 3 lost its crown to the Model Y because the latter is an SUV and what most of the customers, even in the EV market, are looking for,” says Felipe Munoz, senior analyst at Jato Dynamics.
Global powerhouses Toyota and Mercedes both scored major successes last year. Toyota extended its lead over the Volkswagen Group as the world’s leading vehicle manufacturer, while Mercedes sneaked ahead of BMW as the world’s biggest maker of premium cars.
All these ups and downs played out against strategic strife in the shape of the energy crisis caused by the outbreak of war in Europe, the chip shortage and recovery from the pandemic. It’s therefore no surprise that only two global markets (China and India) grew, recovering to 2020 levels after the ravages of peak Covid.
In the face of this adversity, the car industry did what it does best: roll up its sleeves and find solutions to problems. In this case, that meant focusing on the most profitable models.
“The industry has learned from the three consecutive crises since the pandemic and posted record profits despite the sales drop,” explains Munoz.
US falls further behind China; India races ahead
China’s crushing domination of the global car market kept rolling in 2022, as this country of 1.4 billion people extended its sales lead over its nearest rival, the US, a country of 300 million.
EVs steered China’s recovery from three years of stagnation, with sales nearly doubling. But the gap between these two heavyweights stretched because the US market regressed back to 2011 levels, dragged down by shortages of many components, not just chips, and the dwindling availability of cheap lease finance.
India made a huge statement last year by overtaking Japan to become the world’s third-biggest market – a significant step forward for a country that has the potential to match China for new car sales, given its similar population.
Germany retained fifth position, despite not growing, while the other major European markets declined.
Jato analysis: “India was number three, ahead of Japan, thanks to a more dynamic market, better products, deals and a rapid recovery from the pandemic. Japan is a mature market that reached its peak many years ago.”
The top 10 global markets and how many cars were sold in each