Global Demand For New Cars Will Grow By 2026 - EY

According to an EY survey, the automotive industry is expected to experience a significant increase in global demand for new vehicles by 2026. The survey, which included the opinions of 19,000 people from 28 countries, found a 7% increase in the number of respondents who plan to buy a new car by mid-2026 compared to the previous year.

This expected increase in car sales is influenced by a variety of factors such as technological advancements, economic dynamics, and shifting consumer preferences. The survey reveals a growing preference for electric vehicles (EVs), with 24% of potential buyers considering an EV as their next purchase, up from 20% the previous year.

Although interest in electric vehicles is growing, 29% of potential buyers still prefer cars with gasoline engines, while 33% are drawn to hybrid and plug-in hybrid models combined. Conversely, only 8% of respondents selected diesel cars, suggesting that they are becoming less and less popular.

The survey also clarifies how consumer behavior is affected by the present state of the economy. Due to economic uncertainty, many people are delaying buying cars, which has resulted in a drop in sales for some of the biggest automakers in the world.

Many governments are providing incentives to promote the purchase of cars with low emissions. A wider range of consumers can now afford EVs and hybrids thanks to these incentives, which can take the form of tax breaks, grants, or subsidies.