Carmakers Remain Robust Despite Global Sales Slowdown - Fitch

Meanwhile, passenger vehicle sales growth in China slowed in 2023, with strong growth in new-energy vehicle (NEV) sales offsetting a decline in internal combustion engine vehicle sales. We anticipate that the trend will continue in 2024, with passenger-vehicle sales growing at a flat to low-single-digit rate.

Electric vehicle (EV) sales have continued to outpace overall sales in major markets, albeit by varying degrees. We anticipate strong growth in NEV sales and penetration in China in 2024, but slower growth in other markets, such as the United States.

Vehicle prices in the United States and Europe remained relatively stable in 2023, but could fall in 2024 due to mix normalization and higher incentives, as sales growth moderated. Given the aggressive pricing of local EV brands and the efforts of global automakers' joint-venture brands to catch up in EV sales, we believe the severe price competition in the Chinese EV market will likely continue.