The global automotive industry has evolved from early mechanical vehicles to intelligent, electrified and connected mobility systems. It is now undergoing structural transformation driven by digitalisation, sustainability imperatives and geopolitical shifts. Intelligent vehicles, electrification and mobility-as-a-service models are reshaping traditional value chains and prompting manufacturers, suppliers and policymakers to rethink their roles in a fast-changing global ecosystem.
Over the past decade, global automotive production patterns have shifted geographically. Between 2014 to 2024, Europe and the Americas saw declining production shares, while Asia and Oceania recorded gains. This reflects not only changing cost structures and demand centres, but also the rising industrial capabilities of Asian countries in vehicle design, manufacturing and innovation.
Asia has become the new centre of global automotive production, supported by:
- Strong domestic demand in China, India and Southeast Asia.
- Policy-led support for new energy vehicles (NEVs) and green mobility.
- Accelerated localisation of R&D and supply chains by global OEMs.
In addition, the rapid rise of electric vehicles, autonomous driving technologies and software-defined vehicles is driving new investment into Asia’s automotive innovation ecosystem.
China’s automotive industry, after rapid expansion in the early 2000s, has entered a new phase of steady and high-quality growth. According to data from the China Association of Automobile Manufacturers, production and sales in 2024 are expected to reach 31.282 million and 31.436 million units, up 3.7% and 4.5% year-on-year, respectively. This marks the 16th consecutive year that China has maintained its position as the world’s largest automotive market.
Key dynamics shaping China’s automotive sector include:
- Strong momentum in NEVs with rapid expansion in electric and plug-in hybrid models driving both domestic and overseas sales.
The rising global influence of Chinese auto brands such as BYD, NIO and SAIC, which are gaining recognition and market share internationally. - Accelerating exports, supported by trade facilitation measures and bilateral agreements that expand access to international markets.
- This transition reflects a broader strategic shift from a domestic volume-driven market to a globally integrated player competing on technology, brand strength and sustainability.
- The growing success of Chinese NEV exports also signals the country’s emerging role in the global green mobility transition.