The Ford Mustang and Chevrolet Corvette are resisting
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The Ford Mustang and Chevrolet Corvette are resisting
For the past ten years, the strategy of the two largest American manufacturers, GM and Ford, has been to eliminate sedans from their ranges sold in the United States . This has seen the disappearance of:
1. at Ford: Focus (C segment) in 2018, Fiesta (B segment) in 2019, Taurus (E segment) in 2019, Fusion (D segment) in 2020.
2. at Lincoln: MKS (E segment) in 2016, MKZ (D segment) in 2020, Continental (F segment) in 2020.
3. at Chevrolet: Aveo (B-segment) in 2017, Cruze (C-segment) in 2019, Volt (D-segment) in 2019, Impala (E-segment) in 2020, Bolt (B-segment) in 2023, Malibu (D-segment) in 2024. The Camaro coupe was discontinued in 2023.
4. at Buick: Verano (C segment) in 2016, Regal (D segment) in 2017, La Crosse (E segment) in 2019.
5. at Cadillac: ATS (D segment) in 2019, CTS (E segment) in 2019, XTS (E segment) in 2019, CT6 (E segment) in 2020. The CT4 and CT5 are on borrowed time.
Segment C represents 35.4% of the European passenger vehicle market (30 countries) in 2024
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Segment C represents 35.4% of the European passenger vehicle market (30 countries) in 2024
- The-segmentation of the European passenger car market in 2024 shows that the C-segment remains predominant, with a 35.4% market share, a slight increase compared to 2023 (34.9%).-segment B is close behind C-segment, with a market share of 32.7% in Europe in 2024, a slight increase compared to 2023 (31.8%). These two-segments are therefore consolidating their lead over all others.
- The D-segment is rather stable (14.9%) but has lost influence compared to the early 2000s (it then represented 16% of the market between 2005 and 2008).The E-segment has been in constant decline for around twenty years. It will represent only 6.0% of the European market in 2024, compared to 6.7% in 2023 and 7.0% in 2022. The D and E-segments are probably victims of high prices and the constant improvement in the performance of more compact models (particularly the C-segment) whose dimensions and performance are regularly increasing.
- The A-segment (4.2%) has been completely neglected by carmakers, but it could be reborn in the coming years, as the increase in the size, features and price of B-segment cars creates an increasingly gap below the B-segment.
- When analysing the European market by body type, the year 2024 shows an increasingly strong dominance of SUVs (54% of the market) against sedans (42%). Sedans still represented 80% of the European market between 2005 and 2009, and SUVs less than 10%. MPVs have practically disappeared from the market (1.5% of the market in 2024 compared to 15% in 2005). As for Vans (passenger transport versions of light utility vehicles), they have regained some strength in 2024, with 2.5% of the market.
Light Utility Vehicle production in Europe increased by 12% in 2024
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Light Utility Vehicle production in Europe increased by 12% in 2024
- Since 2005, the production volume of light utility vehicles (LUVs) in Europe 30 countries (EU + United Kingdom + Switzerland + Norway) has followed the sales curve of these vehicles on the continent, with a figure close to two million units in 2024, is comparable to the LUV market in Europe (+12.0% compared to 2023).
- We can therefore say that the volume of LUV exports is very close to the volume of imports, mainly from Turkey (Ford Transit, Transit Custom) which remains the country from which Europe imports the most LUVs (200,000 units in 2024) and from Thailand (most pick-ups, i.e. 80,000 units in 2024). Europe therefore exports nearly 300,000 LUVs to other regions of the world, which represents 15% of total European LUV production in 2024.
- Among the carmakers producing LUVs in Europe (there are only seven major LUV carmakers on this continent), the Stellantis group is the clear leader thanks to its Citroën, Peugeot, Opel and Fiat brands, with 40% of total LUV production in Europe in 2024, ahead of Renault (17% of production), Mercedes (12% of production), Volkswagen (11% of production), Ford (8% of production), Toyota (4% of production) and Nissan (3% of production).
- The European countries that produce the most LUVs are France (612,000 units in 2024), ahead of Spain (389,000 units), Poland (300,000 units), Italy (230,000 units), Germany (206,000 units) and England (105,000 units).
Global automobile production (passenger cars and utility vehicles) remained stable in 2024
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Global automobile production (passenger cars and utility vehicles) remained stable in 2024
- According to Inovev estimates, the volume of global automotive production (PC+UV) remained stable in 2024 compared to 2023, with a production volume of 91.5 million vehicles (passenger cars, light utility vehicles, heavy and medium utility vehicles and buses), which tends to demonstrate that carmakers continued to destock last year, but less than the previous year, the global automotive market having grown by 1.7% last year.
- Europe and Asia produced fewer vehicles than the previous year. In Asia, the increase recorded in China (+1,115,000 units) could not offset the decline recorded in Japan (-685,000 units), Thailand (-375,000 units), Indonesia (-205,000 units), and Korea (-145,000 units). The two Americas recorded a slight increase (around +1.5%). Finally, the most dynamic region is Russia, which increases from 615,000 units in 2023
to 756,000 in 2024, thereby compensating for the temporary halt in production in Serbia, Ukraine, and Belarus.
But we are still far from returning to the levels reached before 2022.
to 756,000 in 2024, thereby compensating for the temporary halt in production in Serbia, Ukraine, and Belarus.
But we are still far from returning to the levels reached before 2022.
German carmakers' decline in China
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German carmakers' decline in China
- German carmakers (Volkswagen Mercedes, BMW) entered the Chinese market in the 1980s and 1990s. The Volkswagen group immediately took the leading position over the foreign and Chinese competition. It went as far as producing more than 4 million cars per year, with peak production reaching 2018. From 2019-2020, the context completely changed as the demand for electric cars (as well as supply) began to explode, a consequence of a Chinese strategy aimed at promoting electric vehicles, for which Chinese carmakers (primarily BYD ) where prepared for decades with heavy investments, as well as the American Tesla, which was then ahead of other carmakers in this market.
- Volkswagen's sales declined sharply at that time, dropping from 4 million to 3 million units in two years (between 2019 and 2021). The group managed to resist for two years (between 2021 and 2023), mainly thanks to the strong sales performance of Audi, the group's premium subsidiary. But the year 2024 saw a further decline for the Volkswagen group, to 2.75 million units.
- Independent German premium carmakers Mercedes and BMW managed to make progress through 2023, thanks to their image as makers of prestigious cars, a category in which Chinese carmakers were not yet very present. 2024 saw their first real decline facing the development of Premium Chinese brands.
- Overall, the market share of the Volkswagen, Mercedes and BMW groups has gradually fallen from 20% in 2017 to 16% in 2024, and the coming years are likely to be even more difficult, as Chinese customers increasingly turn to Chinese brands that have made enormous progress over the past ten years.
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