International Passenger Car Markets Rebound – Only China Falters

The international automotive markets have experienced a dynamic and positive first quarter in the majority of cases. With the exception of the Chinese market, all major automotive regions recorded significant increases in new registrations compared to the first quarter of the previous year. In Europe (EU, EFTA & UK) as well as in Japan and the USA, the market is currently benefiting from a progressively improving supply situation and weak figures from the previous year. The first quarter of 2022 was significantly impacted by material shortages and the onset of the Russian aggression against Ukraine. The Chinese market developed significantly weaker at the beginning of the current year.

Europe Far Behind Pre-Crisis Levels

In the European passenger car market, around 3.2 million vehicles were newly registered in the first quarter of 2023. This is a good 17 percent more than in the same period of the previous year. However, there is still a sales gap of 22 percent compared to the first quarter of the pre-crisis year 2019. The five largest individual markets developed positively: The most dynamic growth in the first quarter was recorded in Spain (+45 percent) and Italy (+26 percent). The United Kingdom (+18 percent) and France (+15 percent) also achieved double-digit growth rates. The German market grew somewhat more modestly at 7 percent. In March, the overall European market increased significantly by 26 percent, reaching a volume of 1.4 million passenger cars.

Nearly 80 Percent Light Trucks in the USA

In the United States, light-vehicle sales (passenger cars and light trucks) increased by 8 percent in the first quarter of 2023 compared to the same period of the previous year. A total of nearly 3.6 million vehicles were sold. The light truck segment (+8 percent) and the passenger car segment (+7 percent) developed with similar dynamics. The popular light truck segment now accounts for a good 79 percent of the total market. The U.S. market in the first quarter of 2023 is still 11 percent below the first quarter of the pre-crisis year 2019. In March 2023, with 1.4 million newly sold light vehicles, there was a 9 percent growth compared to March 2022.

Strong Growth in Japan

In Japan, the sales of new cars increased significantly in the first quarter (+17 percent compared to the first quarter of 2022). It reached a volume of nearly 1.2 million units. The extremely weak level of the previous year, combined with an improved supply situation, is stimulating the market and production in Japan. However, it is also true for the Japanese market that it is still below the pre-crisis level: Comparing Q1 2023 to Q1 2019, there is a sales deficit of 10 percent. In March, a total of 477,900 units were sold, representing an increase of 12 percent.

Two Weak, One Strong Month in China

In the Chinese car market, 5.1 million new vehicles were sold in the first quarter of the year. This is 7 percent less than in the first quarter of the previous year. The declines from the first two months of this year could not be fully offset by a stronger March. In March, nearly 2 million units were sold, which was 23 percent more than in March of the previous year.