Global Automotive Manufacturing Passenger Vehicle Market Overview
As per MRFR analysis, the automotive manufacturing passenger vehicle market Size was estimated at 252.23 (USD Billion) in 2022. The automotive manufacturing passenger vehicle market is expected to grow from 255.38 (USD Billion) in 2023 to 285.55 (USD Billion) by 2032. The automotive manufacturing passenger vehicle market CAGR (growth rate) is expected to be around 1.25% during the forecast period (2024 - 2032).
Key Automotive Manufacturing Passenger Vehicle Market Trends Highlighted
There are now a lot of prospects for makers of electric and hybrid vehicles because of growing environmental concerns and government requirements. Industry innovation is fueled by the growing acceptance of linked and autonomous automobiles.
As consumer preferences change, personalization and customisation cater to those needs while automation and modern production technologies boost productivity and efficiency.
Furthermore, the ownership landscape is being transformed by subscription services and shared mobility, which presents opportunities as well as problems for the passenger car industry.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Manufacturing Passenger Vehicle Market Drivers
Rising Demand for Fuel-Efficient Vehicles
The increasing awareness about environmental protection and the rising cost of fuel have led to a surge in demand for fuel-efficient vehicles.
This trend is expected to continue in the coming years as governments implement stricter emission regulations and consumers become more environmentally conscious.
Manufacturers are responding to this demand by developing new technologies that improve fuel efficiency, such as hybrid and electric vehicles.
Technological Advancements
The global automotive manufacturing passenger vehicle market is witnessing rapid technological advancements that are transforming the way vehicles are designed, manufactured, and operated.
These advancements include the adoption of artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT).
These technologies are enabling the development of new features and capabilities that enhance the safety, comfort, and convenience of vehicles.
Growing Popularity of Ride-Hailing Services
The rise of ride-hailing services such as Uber and Lyft has led to a shift in consumer behavior, particularly in urban areas.
More and more people are opting to use ride-hailing services instead of owning a car, which is reducing the demand for personal vehicles.
This trend is expected to continue in the coming years as ride-hailing services become more affordable and accessible.
Automotive Manufacturing Passenger Vehicle Market Segment Insights:
Automotive Manufacturing Passenger Vehicle Market Propulsion System Insights
The Propulsion System segment is a crucial aspect of the global automotive manufacturing passenger vehicle market, influencing market growth and consumer preferences. In 2023, the Internal Combustion Engine (ICE) dominated the segment, accounting for a significant portion of the market revenue.
However, the demand for alternative fuel vehicles is gaining traction, driven by environmental concerns and government regulations. Hybrid Electric Vehicles (HEVs) are expected to witness steady growth in the coming years, offering a balance between fuel efficiency and affordability.
Plug-in Hybrid Electric Vehicles (PHEVs) provide an extended electric-only range, appealing to consumers seeking a transition to zero-emission driving. Battery Electric Vehicles (BEVs) are gaining popularity due to their zero-emission operation and advancements in battery technology.
While Fuel Cell Electric Vehicles (FCEVs) offer the potential for extended range and rapid refueling, their market penetration is currently limited by infrastructure challenges. The increasing adoption of electric vehicles is fueled by rising fuel prices, government incentives, and growing consumer awareness about environmental sustainability.
The global automotive manufacturing passenger vehicle market is expected to witness significant growth in the coming years, driven by the rising demand for alternative fuel vehicles and the ongoing transition towards a greener transportation sector.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Manufacturing Passenger Vehicle Market Body Style Insights
The global automotive manufacturing passenger vehicle market is segmented by Body Style into sedan, SUV, hatchback, Coupe, and Convertible. The SUV segment is estimated to be the largest segment of the market by the year 2032.
The growing preference for SUVs by consumers is due to the spacious interiors of the vehicle, higher ground clearance and improved safety features. The sedan segment is expected to witness a considerable growth rate during the forecast period owing to reasons that sedans are widely preferred by consumers due to their comfort, style and fuel efficiency.
The hatchback is anticipated to remain a popular segment with the consumers with limited budget. The coupe and the convertible are expected to be limited to niche markets.
Automotive Manufacturing Passenger Vehicle Market Size Insights
Size Segment Insight and Overview The global automotive manufacturing passenger vehicle market is segmented by size into subcompact, compact, mid-size, full-size, and luxury vehicles. In 2023, the compact segment held the largest market share, accounting for approximately 38.5% of the global market.
The mid-size segment is expected to experience the fastest growth over the forecast period, with a CAGR of 2.5%. The growth of the compact segment can be attributed to the increasing popularity of fuel-efficient and affordable vehicles, particularly in emerging markets.
The mid-size segment is expected to benefit from the rising demand for spacious and comfortable vehicles, especially in developed markets.
The full-size segment is expected to witness moderate growth, driven by the growing demand for luxury and performance vehicles. The luxury segment is expected to experience the slowest growth due to its high price point and limited target market.
Automotive Manufacturing Passenger Vehicle Market Price Range Insights
The Price Range segment plays a crucial role in shaping the dynamics of the global automotive manufacturing passenger vehicle market. The segment comprises four primary categories: Economy, Mid-range, Luxury, and Premium.
Each category targets distinct consumer segments with varying preferences and purchasing power. The Economy segment caters to budget-conscious consumers seeking affordable and practical vehicles. This segment accounted for a significant share of the global automotive manufacturing passenger vehicle market revenue in 2023 and is projected to maintain its dominance in the coming years.
The increasing demand for fuel-efficient and cost-effective vehicles drives the growth of this segment. The Mid-range segment targets consumers seeking a balance between affordability and features. Vehicles in this segment offer enhanced comfort, safety, and technology compared to the Economy segment.
The growing middle class in emerging economies is expected to fuel the growth of the Mid-range segment in the global automotive manufacturing passenger vehicle market. The Luxury segment caters to affluent consumers seeking high-end vehicles with premium features, advanced technology, and luxurious interiors.
This segment is expected to witness steady growth in the global automotive manufacturing passenger vehicle market, driven by the increasing demand for personalized and exclusive driving experiences. The Premium segment represents the highest level of luxury and exclusivity in the global automotive manufacturing passenger vehicle market.
Vehicles in this segment are meticulously crafted with the finest materials, cutting-edge technology, and unparalleled performance. The Premium segment caters to a niche market of discerning consumers willing to pay a premium for the ultimate driving experience.
Automotive Manufacturing Passenger Vehicle Market Regional Insights
The regional segmentation of the global automotive manufacturing passenger vehicle market offers valuable insights into the geographical distribution of market growth.
North America is expected to hold a significant market share in 2023, with a valuation of around USD 105.6 billion and is projected to reach USD 115.8 billion by 2032. Europe follows closely with a market size of approximately USD 89.4 billion in 2023 and is anticipated to grow to USD 97.5 billion by 2032.
The Asia-Pacific (APAC) region is projected to witness substantial growth, with a market valuation of USD 47.3 billion in 2023 and an expected valuation of USD 56.9 billion by 2032.
South America and the Middle East and Africa (MEA) regions are also expected to contribute to the overall market growth, with projected valuations of USD 9.6 billion and USD 3.4 billion by 2032, respectively.
These regional insights provide a comprehensive understanding of the market dynamics and growth potential in different parts of the world.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Manufacturing Passenger Vehicle Market Key Players and Competitive Insights:
There are many players in the automotive manufacturing passenger vehicle market who are focusing on introducing new features and functionalities according to the demands of customers. Some of the players in the industry are focused on offering products with advanced features at a low cost.
At the same time, few players in the industry are also focusing on scaling their operations through automation and digital technologies. Through this approach, companies in the industry can improve efficiency rates and scale down their operational costs.
The top players in Automotive Manufacturing Passenger Vehicle Market are investing heavily in research and development activities to bring new products and solutions on a consistent basis. These players in the industry are also focused on entering into strategic agreements with other participants to scale and diversify product offerings in the new regions.
Toyota Motor Corporation is one of the top players in the automotive manufacturing passenger vehicle market. One of the biggest strengths of Toyota is its presence in multiple regions including Asia Pacific, North America, and Europe.
The company is synonymous with the key features of quality, reliability, and innovation. Toyota has one of the strongest portfolios of sedans and SUVs in the industry. The company is also focused on developing fuel-efficient vehicles and heavily investing in advanced technologies such as hybrid and electric vehicles.
General Motors is one of the key competitors in the automotive manufacturing passenger vehicle market. The company has a strong presence in North America and China. GM offers one of the widest range of passenger vehicles, including Sedans, Trucks, and SUVs.
GM is one of the leading electric vehicle companies and is at the forefront of expanding its portfolio of autonomous vehicles. The company is also investing in new manufacturing technologies to reduce costs and improve efficiency rates.
Key Companies in the automotive manufacturing passenger vehicle market Include:
- Ford
- Stellantis
- Geely
- SAIC Motor
- Changan Automobile
- Daimler
- fia
- Hyundai
- Great Wall Motor
- Toyota
- Nissan
- Honda
- BMW
- General Motors
- Volkswagen
Automotive Manufacturing Passenger Vehicle Market Developments
The rising disposable income, growing urbanization, and increasing demand for personal mobility are key factors driving market growth. Electrification and autonomous driving technologies are emerging trends shaping the industry.
For instance, in 2023, Toyota announced plans to invest $3.4 billion in automotive battery production in the United States.
Governments worldwide are implementing supportive policies to promote electric vehicle adoption, such as tax incentives and charging infrastructure development.
Automotive Manufacturing Passenger Vehicle Market Segmentation Insights
Automotive Manufacturing Passenger Vehicle Market Propulsion System Outlook
- Internal Combustion Engine (ICE)
- Hybrid Electric Vehicle (HEV)
- Plug-in Hybrid Electric Vehicle (PHEV)
- Battery Electric Vehicle (BEV)
- Fuel Cell Electric Vehicle (FCEV)
Automotive Manufacturing Passenger Vehicle Market Body Style Outlook
- Sedan
- SUV
- Hatchback
- Coupe
- Convertible
Automotive Manufacturing Passenger Vehicle Market Size Outlook
- Subcompact
- Compact
- Mid-size
- Full-size
- Luxury
Automotive Manufacturing Passenger Vehicle Market Price Range Outlook
- Economy
- Mid-range
- Luxury
- Premium
Automotive Manufacturing Passenger Vehicle Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
252.23(USD Billion) |
| Market Size 2023 |
255.38(USD Billion) |
| Market Size 2032 |
285.55(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
1.25% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Ford, Stellantis, Geely, SAIC Motor, Changan Automobile, Daimler, fia, Hyundai, Great Wall Motor, Toyota, Nissan, Honda, BMW, General Motors, Volkswagen |
| Segments Covered |
Propulsion System, Body Style, Size, Price Range, Regional |
| Key Market Opportunities |
Electric vehicle growth Technological advancements Emerging markets Subscription-based models Autonomous driving |
| Key Market Dynamics |
Increasing EV demand, technological advancements, supply chain disruptions, rising fuel costs, and government regulations. |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The global automotive manufacturing passenger vehicle market reached USD 255.38 billion in 2023.
The global automotive manufacturing passenger vehicle market is expected to reach USD 285.55 billion by 2032.
The global automotive manufacturing passenger vehicle market is expected to grow at a CAGR of 1.25% from 2024 to 2032.
The Asia-Pacific region is expected to account for the largest market share in the global automotive manufacturing passenger vehicle market in 2032.
The electric passenger vehicle segment is expected to have the highest growth rate in the global automotive manufacturing passenger vehicle market from 2024 to 2032.
Some of the key competitors in the global automotive manufacturing passenger vehicle market include Toyota, Volkswagen, General Motors, Ford, and Hyundai.
Some of the key trends driving the growth of the global automotive manufacturing passenger vehicle market include increasing demand for electric vehicles, rising disposable incomes, and growing urbanization.
Some of the challenges facing the global automotive manufacturing passenger vehicle market include rising raw material costs, supply chain disruptions, and increasing competition from emerging markets.
Some of the opportunities for growth in the global automotive manufacturing passenger vehicle market include increasing demand for autonomous vehicles, growing popularity of ride-sharing services, and expanding e-commerce market.
Some of the key strategies being adopted by players in the global automotive manufacturing passenger vehicle market include investing in research and development, expanding production capacity, and forming strategic partnerships.
