Global Car & Automobile Manufacturing Market Size, Share, and COVID-19 Impact Analysis, Russia-Ukraine War Impact, Tariff Analysis, By Product & Services (SUVs & Crossovers, Cars, and Commercial Vehicles), By Major Markets (Households (Developing Markets), Households (Mature Markets), Businesses (Mature Markets), and Businesses (Developing Markets)), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2025 - 2035

Car & Automobile Manufacturing Market Summary, Size & Emerging Trends

According to Spherical Insights, the Global Car & Automobile Manufacturing Market Size is Expected to Grow from USD 2780.5 Billion in 2024 to USD 6869.5 Billion by 2035, at a CAGR of 8.57% during the forecast period 2025-2035. Consumer prioritization towards hybrid electric vehicles, advancements in manufacturing processes, and technological advancements are the key growth drivers for the global car & automobile manufacturing market.

Key Market Insights

• Asia Pacific is expected to account for the largest share in the car & automobile manufacturing market during the forecast period.
• In terms of product & services, the cars segment is projected to lead the car & automobile manufacturing market in terms of equipment throughout the forecast period
• In terms of major market, the households (developing markets) segment captured the largest portion of the market

Global Market Forecast and Revenue Outlook

• 2024 Market Size: USD 2780.5 Billion
• 2035 Projected Market Size: USD 6869.5 Billion
• CAGR (2025-2035): 8.57%
• Asia Pacific: Largest market in 2024
• North America: Fastest growing market

Car & Automobile Manufacturing Market

The car & automobile manufacturing market includes the designing, development, production, marketing, and sale of motor vehicles. Car & automobile manufacturing refers to the process of assembling components for building automobiles, trucks, cars, and other motor vehicles. The increasing middle-class population and young Indians are key factors driving the sales of two-wheelers, especially during festivals and auspicious times. Commercial vehicles are in great demand for logistics and shipping with the growing e-commerce industry. Further, telematics, shared mobility, and customized transportation solutions are some of the features integrated into the automobiles, which are enhancing the market growth.

Car & Automobile Manufacturing Market Trends

• AI for optimizing production, real-time monitoring, and data-driven decision making across the automotive supply chain.
• Electrification and connectivity features in car & automobile manufacturing
• Advanced manufacturing technologies, including robotics, 3D printing, and digital twins.

Car & Automobile Manufacturing Market Dynamics

Driving Factors: Consumers' growing preference towards hybrid electric vehicles and advancement in manufacturing processes are driving growth in the car & automobile manufacturing market

The growing inclination towards fuel-efficient automobiles for alleviating the environmental costs associated with the consumption of fossil fuels is driving the demand for hybrid electric vehicles, thereby propelling the market growth. Innovation in the manufacturing of cars and automobiles aligns with the technological advancements and changing consumer preferences for greater efficacy, sustainability, and competitiveness are escalating the market. In addition, the expanding middle-class population, along with growing urbanization and infrastructure developments, is driving the demand for cars, two-wheelers, and commercial vehicles for better mobility and lifestyle options, thereby supporting the car & automobile manufacturing market demand.  

Restrain Factors: The car & automobile manufacturing market faces challenges due to the lack of a skilled workforce and environmental concerns

The complexity in the automobile manufacturing components and high initial installation costs due to advanced engineering technology in the automobile sector are hampering the market growth. The technological advancements in automobile manufacturing require new software, data, and electrical expertise, driving the need for a skilled workforce, which is a challenging factor for the market.

Opportunity: Increasing investment in electromobility and new customer-oriented innovations are creating new opportunities in the car & automobile manufacturing market

Increasing sales of connected cars are driving the premiumization in the automobile sector. Use of natural raw materials for manufacturing battery cells and carbon-intensive production of batteries are mitigating the environmental impact caused by the conventional engine-powered vehicles. Integration of automation, digitalization, and sustainable practices is making a remarkable transformation in the cars & automobile manufacturing industry. Customer feedback is invaluable for manufacturers to enable innovation and create products that align with real-world demands. 

Challenges: Stringent environmental regulations associated with automobile manufacturing are challenging the market.

Stringent regulations for reducing the environmental impact of auto manufacturing and fluctuation in consumer demand and purchasing power are impacting the market demand. Disruption in the supply chain is affecting automobile production, thereby challenging market growth. 

Global Car & Automobile Manufacturing Market Ecosystem Analysis

The global car & automobile manufacturing Market ecosystem focuses on the designing, development, and production of motor vehicles. Technological advancements, including the integration of AI, additive manufacturing, Internet of Things, are driving product innovation and manufacturing efficiency.  Market growth is driven by innovations like electric vehicles and advanced manufacturing technologies, while the lack of a skilled workforce and environmental concerns remain challenges. Opportunities lie in emerging markets, customer-oriented solutions, and increasing premiumization in the automobile sector.

Global Car & Automobile Manufacturing Market, By Product & Services

The cars segment led the car & automobile manufacturing market, generating the largest revenue share. This is driven by the growing need for electric vehicles, with an increasing automation and preferences for connected vehicles. Increasing demand for affordable and efficient transportation solutions, especially in developing regions and urbanized regions. 

The SUVs & crossovers segment in the car & automobile manufacturing market is expected to grow at a rapid CAGR over the forecast period. SUVs and crossovers are fuel-efficient vehicles and cost-effective. The increasing popularity of SUVs, urbanization, and consumers' increasing prioritization of advanced safety features are driving the market demand.

Global Car & Automobile Manufacturing Market, By Major Markets

The households (developing markets) segment held the largest market share in the car & automobile manufacturing market, due to the increasing disposable incomes and urbanization in countries like China, India, Brazil, and others. There is an increasing demand for reliable transportation solutions and an increasing demand for personal vehicles, especially compact cars and SUVs.

The households (mature markets) segment held a significant share in the car & automobile manufacturing market, due to increasing technological integration, including electronic vehicles and autonomous systems. Mature markets include a broad range of used cars, often sourced from a well-developed leasing market and backed by a trusted used vehicle distribution brand.

Asia Pacific is expected to account for the largest share of the car & automobile manufacturing market during the forecast period,

driven by rapid urbanization, economic growth, and a young population. Consumers' increasing preference for vehicle ownership, demand for shared mobility are propelling the market demand in the region. Further, rising passenger transportation, along with the adoption of purpose-driven business models, is contributing to promoting the market.

China is anticipated to hold a significant share of the car & automobile manufacturing market,

attributed to the robust presence in aftermarket services and a highly skilled workforce specializing in cost-effective production. China is the world’s largest automotive manufacturing country, accounting for a third of worldwide vehicle production.  

North America is expected to grow at the fastest CAGR in the car & automobile manufacturing market during the forecast period.

An increasing electric mobility solution, along with government support, is promoting the market growth in the region. Significant presence of working-class population and increase in consumer preferences for country-made vehicles are expected to drive the market. Further, investment in electric and autonomous technologies, driving innovation and competitiveness, contributes to market growth.  

United States is expected to hold a significant share of the market,

due to the region’s significant working-class population and presence of diverse manufacturing facilities, which are scaling production, thereby propelling the market. An increasing demand for commercial vehicles owing to the thriving logistics and passenger transportation industry is supporting the market demand.

WORLDWIDE TOP KEY PLAYERS IN THE CAR & AUTOMOBILE MANUFACTURING MARKET INCLUDE

• TATA Motors
• Mahindra & Mahindra
• Bajaj Auto
• General Motors
• Hyundai Motor Limited
• Ford
• Jaguar Inc.
• BYD Auto
• Eicher
• Volkswagen
• Toyota Motor Corporation
• Others

Product Launches in Car & Automobile Manufacturing

• In June 2023, Toyota Motor Corporation (Toyota) held a technical briefing session “Toyota Workshop”, and announced a variety of new technologies that will support its transformation into a mobility company.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the car & automobile manufacturing market based on the below-mentioned segments: 

Global Car & Automobile Manufacturing Market, By Product & Services

• SUVs & Crossovers
• Cars
• Commercial Vehicles

Global Car & Automobile Manufacturing Market, By Major Markets  

• Households (Developing Markets)
• Households (Mature Markets)
• Businesses (Mature Markets)
• Businesses (Developing Markets)

Global Car & Automobile Manufacturing Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa