Rising Income Levels to Boost Global Light Vehicle Sales

2/16/2022

Cleveland, OH, February 16, 2022 — Global sales of light vehicles (LVs) in unit terms are forecast to advance 5.1% annually through 2025, according to Global Light Vehicles, a report recently released by Freedonia Focus Reports. Rising global GDP and personal income levels will support gains. Increasing income levels are bringing personal vehicles within the financial grasp of more people. While consumers in higher income regions will remain the most intensive buyers of LVs on a per capita basis, the fastest rates of growth in total and per capita terms will be posted in lower income countries. However, faster sales growth will be hindered by competition from alternatives such as:

  • motorcycles, which are more suited to the lack of infrastructure common in the rural regions of low-income economies and are generally less costly than LVs
  • public transportation, which proves more convenient than LVs in urban areas
  • the high rates of traffic congestion in many urban areas, which limit the desirability of owning a personal vehicle

Global LV production is expected to grow 6.2% per annum in unit terms through 2025. Increasing global demand for LVs due to rising incomes in low- and middle-income countries will support gains. Manufacturers will seek to enter the LV industries of countries with strong or expanding domestic markets and favorable trade agreements with other nearby countries that will bolster exports. Production will expand further as countries rebound from the impacts of the semiconductor shortage seen through 2020 and 2021.

These and other key insights are featured in Global Light Vehicles. This report forecasts to 2021 and 2025 global light vehicle sales, production, and park by region in units. Regions include:

  • North America
  • Western Europe
  • Asia/Pacific
  • other regions, which span Central and South America, Eastern Europe, and Africa/Mideast

In addition, for the three main regions, sales, production, park, and park per capita by major country are forecast to 2021 and 2025.

To illustrate historical trends, global sales, production, park, and park per capita by major region are provided in annual series from 2010 to 2020. For the three main regions, sales, production, park, and park per capita by major country are provided at five-year intervals for 2010, 2015, and 2020.

Three-wheeled vehicles, such as those used for last-mile transportation of goods in lower income countries, are excluded from the scope of this report. Sales of used light vehicles are also excluded from this report.

More information about the report is available at:

https://www.freedoniafocusreports.com/Global-Light-Vehicles-FW85015/?progid=91541