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Data analysis on the vehicle market

Vehicles sold by major companies in 2022

How the world is addressing the energy transition

The United States' Position in the Energy Transition

The United States has had a fluctuating stance on the energy transition, influenced by changes in administration and policy priorities.
  • Federal Policies: Under the current administration, the U.S. has re-entered the Paris Agreement and announced ambitious plans to achieve net-zero emissions by 2050. Initiatives like the Inflation Reduction Act include significant investments in clean energy, EVs, and infrastructure.
  • Electric Vehicle Industry: The U.S. hosts major EV manufacturers like Tesla, which has been a pioneer in the industry. Traditional automakers like General Motors and Ford are also investing heavily in electrification.
  • Challenges: Despite federal efforts, the U.S. faces challenges such as political polarization, varying state-level policies, and competition from foreign manufacturers.
  • Trade Relations: The U.S. has engaged in trade disputes with countries like China, including tariffs on imported goods, which affect the global supply chain for green technologies.
The U.S.'s approach involves a mix of market-driven innovation and recent policy support, aiming to bolster domestic industries while navigating complex international trade dynamics.

China's Role in the Global Energy Transition

China has positioned itself as a global leader in the energy transition, especially in the realm of renewable energy and electric vehicles. The Chinese government has implemented strong policies and provided substantial subsidies to promote the development of green technologies.
  • Electric Vehicle Market: China is the world's largest market for electric vehicles, with companies like BYD, NIO, and Geely leading the charge. The country's focus on EVs is part of a broader strategy to reduce air pollution and dependency on oil imports.
  • Renewable Energy Investment: China is also the world's largest investor in renewable energy, particularly in solar and wind power. The government has set ambitious targets to increase the share of renewables in its energy mix.
  • Export Ambitions: Chinese companies are expanding globally, aiming to export electric vehicles and green technologies to international markets, including Europe. This expansion raises concerns in the EU about competition and market share.
China's approach combines government support with aggressive industrial policies, which has accelerated its progress but also led to accusations of market distortion due to subsidies.

Japan's Role in the Global Energy Transition

Japan has been proactive in the energy transition, focusing on both technological innovation and policy initiatives.
  • Automotive Industry: Japanese companies like Toyota, Honda, and Nissan have been leaders in hybrid technology and are increasingly investing in EVs and hydrogen fuel cell vehicles.
  • Government Policies: Japan aims to achieve carbon neutrality by 2050. The government's "Green Growth Strategy" targets key sectors for innovation, including mobility, energy, and manufacturing.
  • Technological Focus: Japan emphasizes a diversified approach, investing in hydrogen as a clean energy carrier, in addition to renewables and nuclear energy.
  • International Collaboration: Japan actively participates in international agreements and collaborations to promote global progress in the energy transition.

South Korea's Role in the Global Energy Transition

South Korea has emerged as a significant player in the global automotive industry and the energy transition. Home to major automotive manufacturers like Hyundai Motor Group (which includes Hyundai and Kia), South Korea has invested heavily in EV technology, battery development, and hydrogen fuel cells.

The South Korean government has set ambitious targets to achieve carbon neutrality by 2050. It is promoting the "Korean New Deal," which includes the "Green New Deal" focusing on renewable energy, green infrastructure, and green industries. Significant investments are being made in research and development, particularly in battery technology, where South Korean companies like LG Chem, SK Innovation, and Samsung SDI are global leaders.

South Korea's strategy combines government support with private sector innovation, aiming to make the country a global hub for green technology. This approach poses both a challenge and an opportunity for the EU. On one hand, South Korean advancements increase competition for European industries; on the other hand, they offer potential partnerships in technology and innovation.

India's Position in the Energy Transition

India, as one of the world's fastest-growing major economies, holds a unique position in the global energy transition. The Indian government has set ambitious targets to increase the share of renewable energy and reduce carbon emissions intensity. However, India faces significant challenges, including a large population with rising energy demands and reliance on coal for electricity generation.

In the automotive sector, India is promoting the adoption of electric mobility through initiatives like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme. Indian automotive companies like Tata Motors, Mahindra & Mahindra and Ashok Leyland are investing in EVs and related technologies.

India's strategy focuses on:

- Localization of Manufacturing: Encouraging domestic production of EVs and batteries to reduce dependence on imports.
- Affordability: Developing cost-effective solutions suitable for the Indian market, including two-wheelers and three-wheelers, which are prevalent in the country.
- Infrastructure Development: Expanding charging infrastructure to facilitate the adoption of EVs.

While India is making progress, its energy transition is at a different stage compared to the EU, Japan, or South Korea. Economic constraints and developmental priorities mean that India must balance growth with sustainability. The EU's policies, including tariffs on imported technologies, could impact India's ability to access affordable green technologies, highlighting the interconnected nature of global energy strategies.

Number of Major Automotive Companies and Their Respective Revenues in the Major Countries in 2022

Here is an overview of the major automotive companies in the United States, Europe, and China, along with their revenues for the latest available year (2022). All revenue figures are expressed in U.S. dollars. Please note that these figures are approximate and can vary; for more precise information, it is advisable to consult the annual reports of the individual companies.

United States

  1. Ford Motor Company (2022): Approximately $158.1 billion
  2. General Motors (2022): Approximately $156.7 billion
  3. Tesla, Inc. (2022): Approximately $81.5 billion

Europe

  1. Volkswagen Group (Germany): Approximately $306.1 billion (converted from €279.2 billion)
  2. Stellantis N.V. (Netherlands) - formed from the merger of Fiat Chrysler Automobiles and Groupe PSA in 2021: Approximately $197.5 billion (converted from €179.6 billion)
  3. Mercedes-Benz Group AG (Germany): Approximately $165.0 billion (converted from €150 billion)
  4. BMW Group (Germany): Approximately $157.4 billion (converted from €142.6 billion)
  5. Renault Group (France): Approximately $51.2 billion (converted from €46.4 billion)
  6. Volvo Cars (Sweden) - owned by China's Geely Holding Group but is headquartered in Sweden.: Approximately $34.5 billion (converted from SEK 473.5 billion)
  7. Jaguar Land Rover (United Kingdom) - owned by Tata Motors (India): : Approximately $24.7 billion (£18.3 billion)

China

  1. SAIC Motor (2022): Approximately $110.0 billion (converted from 744.6 billion yuan)
  2. BYD Auto (2022): Approximately $63.0 billion (converted from 424.1 billion yuan)
  3. BAIC Group (2022): Approximately $25.1 billion (converted from 169.5 billion yuan)
  4. FAW Group (2022): Specific data not publicly available
  5. Geely Automobile Holdings (2022): Approximately $21.8 billion (converted from 147.9 billion yuan)
  6. Great Wall Motors (2022): Approximately $20.3 billion (converted from 137.3 billion yuan)
  7. Changan Automobile (2022): Approximately $18.0 billion (converted from 121.5 billion yuan)
  8. Dongfeng Motor (2022): Approximately $15.0 billion (converted from 101.6 billion yuan)

Japan

  1. Toyota Motor Corporation (2022): Approximately $279.3 billion
  2. Honda Motor Company (2022): Approximately $137.3 billion
  3. Nissan Motor Company (2022): Approximately $87.8 billion
  4. Suzuki Motor Corporation (2022): Approximately $31.4 billion
  5. Subaru Corporation (2022): Approximately $27.5 billion
  6. Mazda Motor Corporation (2022): Approximately $25.6 billion
  7. Mitsubishi Motors Corporation (2022): Approximately $15.6 billion

South Korea

  1. Hyundai Motor Company (2022): Approximately $105.8 billion
  2. Kia Corporation (2022): Approximately $69.6 billion
  3. SsangYong Motor Company (2022): Data not readily available due to financial restructuring

India

  1. Tata Motors (2022): Approximately $44.5 billion
  2. Mahindra & Mahindra (2022): Approximately $12.5 billion
  3. Maruti Suzuki India Limited (2022): Approximately $11.8 billion

SUMMARY

Number of Major Automotive Companies:
  • United States: 3 major companies
  • Europe: At least 7 major companies
  • China: 8 major companies
  • Japan: At least 7 major companies
  • South Korea: 2 major companies
  • India: At least 3 major companies

Estimate Revenue and Volume of Sales in 2023
Additionally, the actual number of automotive companies, including smaller or specialized ones, is much higher in each region. For more detailed and up-to-date information, it is recommended to consult the companies' annual reports or official sources within the automotive industry.
Data Accuracy:
  • The figures provided are approximate and based on the latest available data for the year 2022.
  • Revenue figures are derived from the companies' official financial statements and annual reports.
  • The number of major automotive companies includes prominent manufacturers; the actual number of automotive companies, including smaller or specialized ones, is higher in each region.

Useful to Know


  • Global Automotive Landscape:
    • Europe leads in total revenue among the listed regions, reflecting the presence of several major automotive manufacturers with significant global market shares.
    • Japan has a substantial automotive industry with high revenues, led by Toyota Motor Corporation, the world's largest automaker by revenue and vehicles sold.
    • The United States maintains a strong position with three major companies contributing significantly to the global automotive industry.
    • China's automotive industry is growing rapidly, with numerous companies expanding their global presence, especially in electric vehicles.
    • South Korea's automotive industry, represented by Hyundai Motor Company and Kia Corporation, has a considerable impact on the global market.
    • India's automotive industry is emerging, with companies like Tata Motors and Mahindra & Mahindra expanding their international footprint.
  • Industry Trends:
    • There is a global shift toward electric and hybrid vehicles, with significant investments from companies across all regions.
    • Mergers and acquisitions are reshaping the industry, as seen with Stellantis N.V. and the ownership structures of Volvo Cars and Jaguar Land Rover.

Global Electric Vehicle Market

In 2023, the market for Battery Electric Vehicles (BEVs) showed remarkable growth, driven by technological advancements, government incentives, and consumer interest in sustainable transportation. BEVs accounted for 14.6% of new car registrations in Europe, surpassing diesel vehicle sales for the first time. This shift was largely seen in countries like Germany and France, with BEV sales of 470,272 and 261,159 units, respectively. China, the largest global market for EVs, saw 38% of its new car sales being electric, compared to a global average of 17%.

In Italy, despite growth in the broader European market, BEV adoption has been slower. The country registered only 59,478 BEV sales in 2023, reflecting a modest recovery but still below other major European markets. Tesla, specifically, dominated the Italian EV market, with its Model Y and Model 3 leading sales.

Looking ahead, global BEV sales are expected to reach 20% of the total market by 2024, with further growth anticipated in key regions like Europe and China. Europe's sales are projected to hit 3.4 million units in 2024, reflecting an 8% increase from 2023 levels. These trends are driven by both increased consumer demand for electric mobility and strong government policies pushing for greener transportation solutions.

While Europe and China are leading the way, markets like Italy still face challenges in infrastructure and consumer adoption, though incentives and lower vehicle costs could boost future growth.

Key Highlights:

  • BEVs exceeded diesel vehicle sales in Europe in 2023.
  • Germany and France lead BEV sales in Europe.
  • China remains the largest market for BEVs globally.
  • Tesla remains the dominant player in various markets, including Italy.
  • Global BEV sales projected to rise to 20% of total vehicle sales by 2024.
1. Global Electric Vehicle Market in 2023
  • Tesla Model Y was the best-selling electric vehicle globally in 2023, with 1.23 million units sold. Other top sellers included the Tesla Model 3 and models from established brands like Toyota and Nissan.
  • In Europe, the number of electric vehicles exceeded diesel vehicles for the first time, with 14.6% of new car registrations being battery electric vehicles (BEVs), surpassing diesel’s 13.6% share.
  • China continued to be the largest market for EVs, where 38% of new car sales in 2023 were electric, compared to 17% globally.

2. European Electric Vehicle Sales in 2023
  • France and Germany led the market in Europe, with 261,159 and 470,272 BEV registrations respectively in 2023.
  • Italy is lagging behind in the electrification race with only 59,478 EVs sold, despite a modest recovery from 2022 figures (the Italian market saw a decline in electric vehicle registrations, with a -11.61% drop in January 2024 compared to the same period in 2023. Tesla dominated the Italian market in 2023).
  • Spain and the United Kingdom also showed strong growth, with 48,799 and 287,062 EV registrations respectively.

3. Future Projections
  • By 2024, the global share of electric vehicles is expected to rise to 20%, with Europe aiming for 3.4 million units sold, reflecting an 8% growth from 2023.

These trends show significant progress in EV adoption globally, driven by government incentives and technological advancements, but, amongst the bigger countries, Italy remains one of the slower adopters in Europe.

Comparison of Automotive Industry Figures with Respective Populations


Below is a comparison of the automotive industry revenues and populations of the United States, Europe, and China. This will provide insight into the per capita revenue generated by the automotive sector in each region.

United States
  • Population: Approximately 331 million people (as of 2020)
  • Total Automotive Revenue: Approximately $396 billion
  • Revenue per Capita ​≈ $1,196 per person

Europe
  • Population: Approximately 447 million people (European Union, as of 2020)
  • Total Automotive Revenue: Approximately €798 billion
    • Converted to USD: Assuming an exchange rate of €1 = $1.10, the revenue is approximately $878 billion
  • Revenue per Capita ​≈ $1,964 per person

China
  • Population: Approximately 1.4 billion people (1,400 million, as of 2020)
  • Total Automotive Revenue: Approximately 1,555 billion yuan
    • Converted to USD: Assuming an exchange rate of 1 yuan = $0.14, the revenue is approximately $217.7 billion
  • Revenue per Capita ​≈ $156 per person

Summary
  • Revenue per Capita in the Automotive Industry:
    • Europe: Approximately $1,964 per person
    • United States: Approximately $1,196 per person
    • China: Approximately $156 per person

Interpretation
  • Europe has the highest automotive revenue per capita among the three regions, indicating a significant automotive industry relative to its population size.
  • The United States also demonstrates a strong automotive industry per capita, though it is less than that of Europe.
  • China, despite having a large automotive industry in absolute terms, has a lower automotive revenue per capita due to its much larger population.

Notes
  • Exchange Rates: The exchange rates used are approximate and for illustrative purposes. Actual rates may vary.
    • €1 = $1.10
    • 1 yuan = $0.14
  • Population Figures: Based on estimates from 2020. Current figures may differ slightly.
  • Automotive Revenues: Figures are based on the revenues of major automotive companies previously listed. The actual total automotive industry revenue may be higher when considering additional companies and the entire supply chain.

By comparing these figures, we gain an understanding of the relative scale and economic impact of the automotive industry in each region when adjusted for population size.

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Source: © European Union, 1995-2024, Eurostat, ACEA