Globally, auto sales in the first half of 2024 slowed down compared to the rapid rebound seen in 2023. Sales volumes in 2024 are now expected to reach 91.4 million units, just a 1.8% increase over the 89.8 million units sold in 2023. Sales have slowed globally due to weaker customer demand, mixed economic conditions and higher interest rates.
Through June, U.S. auto sales grew 2.1% year over year (YoY) as consumer demand slowed. For the full year 2024, sales are forecast to reach 15.9 million units. Electrified vehicles (EVs) continue to gain market share in the U.S., with battery electric vehicles (BEVs) now accounting for over 8% of new car sales and all EVs accounting for over 20% of new car sales.
Chinese auto sales rose to 18.9 million units in the year-to-date (YTD) period through August 2024, up 3.5% from 2023. Chinese production was up nearly 5% YoY, fueled by strong domestic demand and growing exports. The EV market in China continues to accelerate. Helped by the recent growth of plug-in hybrid electric vehicle (PHEV) sales, over half of all new cars sold in China are now electrified.
In Europe, vehicle sales have stagnated due to lower demand, high car prices, high interest rates, and the ending of certain EV subsidies.6 Most major markets are expecting near-flat results for the full year compared to 2023. Although BEVs have lost some market share, an increase in hybrid sales has driven the YTD market share of all EVs over 50%.
M&A activity in the automotive sector continued its decline in 2024, with fewer than 100 transactions closed in the third quarter of 2024. The total number of closed deals through the third quarter of 2024 was down 55% YoY.
Public company equity performance in selected automotive indexes was mixed through the first three quarters of 2024, with only the Automotive Mobility index beating the S&P 500. The Automotive Original Equipment Manufacturers (OEMs) and Automotive Suppliers indices ended the period in negative territory.
