Despite facing many challenges, the global automotive industry performed well in 2023. Data and estimates from 151 markets indicated that the Tesla electric SUV Model Y topped global sales, with Toyota RAV4 coming in second, and SUVs accounting for nearly half of global sales in 2023.
On Thursday, June 13, the UK-based automotive research company JATO Dynamics revealed that a total of 783.2 million new passenger cars were sold last year, an increase of almost 70 million vehicles from 2022, representing a growth rate of 10%.
Felipe Munoz, senior analyst at JATO Dynamics, commented, “The growth in 2023 was astonishing, especially considering the ongoing geopolitical tensions between China and the US, the instability caused by conflicts in various parts of Europe, persistently high interest rates in most Western countries, and the high prices of automobiles.”
Europe saw the fastest growth in automotive sales in 2023, with a 16% increase compared to 2022, while the US, Canada, Japan, and South Korea saw a 12% increase, and China saw a 6% increase.
Japanese car brands maintained a strong position in the global market with a total sales volume of 23.59 million vehicles.
SUV sales reached 36.72 million vehicles in 2023, setting a new sales record and capturing the highest market share ever. The SUV sales increased by 16% between 2022 and 2023, accounting for nearly 47% of global passenger car sales last year.
The growth was mainly attributed to Tesla’s success in the SUV segment (a 62% increase) and the increasing demand in Europe, India, the Middle East, and Eurasia. China, the US, and Canada remained the largest markets for SUVs, accounting for 54% of the global total. Munoz said, “This is no longer a new trend. In recent years, manufacturers producing SUVs have been actively improving their models to ensure that SUVs offer versatility and attractive new designs.”
Among the top 10 automakers in 2023, Hyundai Kia relies the most on SUV sales, with these vehicles accounting for 56% of its passenger car sales, followed by Ford (49%) and Volkswagen Group (48%).
The Tesla Model Y, a midsize SUV, ranked high globally and became the first-ever all-electric vehicle to lead the global market.
Impressively, the Model Y achieved this position without entering most emerging markets where most consumers still cannot afford it. Munoz stated, “Tesla is a brand designed for developed countries. Although it is currently unable to target these markets, emerging markets have the potential to be an additional source of growth in the future.”
The global sales of the Tesla Model Y totaled 1.22 million vehicles, a 64% increase from 2022 and an additional 480,000 vehicles compared to 2021, a record achievement that other manufacturers have not previously accomplished. Therefore, the sales of the Model Y surpassed traditional global best-selling models such as the Toyota RAV4 and Corolla sedans.
The Toyota RAV4 sold 1.07 million vehicles (a 5% increase) to secure the second position, while the Honda CR-V sold 846,000 vehicles (an 18% increase) to rank third.
The Toyota Corolla sedan with 803,000 vehicles (a 19% decrease) occupied the fourth position. The likely reason for the weak sales of this compact sedan could be its aging design (first released in March 2018) and the emergence of its SUV competitor, the Corolla Cross, which quickly gained popularity in developing economies.
Toyota’s three other models also made it to the top ten, including the Corolla Cross at fifth place, the Camry at sixth place, and the Hilux pickup truck at eighth place.
The Ford F-150 ranked seventh, and the Nissan Sentra ranked ninth.
Meanwhile, the Tesla Model 3 came in tenth place.