Worldwide motor vehicle production by type 2017-2019

Worldwide motor vehicle production declined between 2017 and 2019. Decreasing demand for passenger cars, particularly in China, has triggered a slowdown in production. Heavy commercial vehicle production fell to around four million units worldwide, while the passenger car industry reduced output by six percent in 2019.

Chinese market in free fall

China is the world’s largest producer and consumer of passenger cars. This means that any change in production and sales in the Chinese automotive market will be noticeable in global figures. The Chinese economy has grown in tandem with vehicle production and sales. However, between 2016 and 2019, this growth slowed. Motorists in China have been unable to afford new cars due to lower employment levels and higher prices that came as a result of higher tariffs.

COVID-19 and the motor vehicle industry

The coronavirus outbreak brought many nations and their economies to a grinding halt in 2020. The effect on the motor vehicle industry was particularly noticeable. Many manufacturing facilities across the world were shut down to prevent the spreading of the virus. This means that the downward trend in vehicle production will be even more significant in 2020. It is unclear how quickly manufacturers will be able to return to their previous volume considering the demand for commercial and passenger vehicles will recover as quickly as national economies.