Motor vehicle sales worldwide 2005-2020

Global motor vehicle sales fell by 14 percent in 2020, representing the third consecutive year of declining demand. Larger sales drops were seen following the coronavirus pandemic in 2020 and the 2008-2009 financial crisis.

2020 Outlook

Motor vehicle sales slumped in 2020. During the first half of the year, sales fell considerably in markets around the globe, as countries imposed lockdown measures to deal with the Covid-19 pandemic. Demand for plug-in electric vehicles and rebounding sales in China, the world’s largest automotive market, were not enough to offset the general slump. Even when economies slowly reopened, production facilities remained idle for some time as supply chains suffered from bottlenecks.

China’s changing demand

The rapid economic expansion of China has been supporting domestic sales of new passenger vehicles to the growing middle class. Vehicle sales growth would not be able to grow continuously. Chinese consumers have shown a change in preference for motors: SUVs (sport utility vehicles), luxury cars and electric segments have seen the best growth, while internal combustion engines are seen as outdated. China stands as the largest market for electric vehicles in the world and is expected to remain so over the next decade.