Global Car Production and Trade

Global markets experienced massive growth in commodity prices in 2021 and 2022, due to a surge in consumption demand following the easing of COVID-19 restrictions, as well as the Russia-Ukraine war and sanctions against the Russian economy and exports. The war and sanctions on Russian energy exports resulted in a surge in energy and other commodity prices between February and autumn 2022, but all commodity price indices decreased in March 2023 to the level before Russia's invasion of Ukraine. According to IMF data, the average annual commodity price index increased for all commodities by 84%, energy (fuels) by 132%, food and beverage by 46%, industrial inputs by 37%, base metals by 43%, and precious metals by 30% between 2019 and 2022. Commodity prices remain high, with a 56% growth in March 2023 compared to 2019.

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Car production in Europe decreased by 21% and in America by 49% between 2001 and 2021, but in Asia it increased by 186%. During this period, Asia's share of global car production doubled, reaching 67% in 2021. China, Japan, India, and Korea are the four largest car manufacturers, with a combined share of 61% of global car production in 2021. China increased its production drastically in the 2010s and became the world's largest producer in 2009. China is the biggest winner and the US is the biggest loser in the auto industry in recent years.

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Mergers and acquisitions have shaped the global car industry to become more consolidated and globalized. Although most of the world's car producing capacity has shifted to emerging markets (mainly China and India), European, Japanese, and American automakers remain industry pioneers and lead markets and supply chains around the world.

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Car manufacturing is a global industry. In 2021, Germany was the #1 exporter and #2 importer, Japan was the #2 exporter and #15 importer, and the US was the #3 exporter and #1 importer of passenger cars in the world. Despite being the world's number one car maker, China was the third largest car importer with a trade deficit of $30 billion in 2021. Japan and Germany are the world's car trade winners, with trade surpluses of around $73 billion each in 2021. The US car trade deficit reached $92 billion in 2021.

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The global car industry will continue to evolve at an even faster pace in the coming years. Innovation and technology (such as electric cars, advanced robotics, and artificial intelligence) will be key drivers of the global car industry transition in the future.