Passenger Car Market Report 2025

The passenger car market size has grown strongly in recent years. It will grow from $1.78 trillion in 2024 to $1.93 trillion in 2025 at a compound annual growth rate (CAGR) of 8.7%. The growth in the historic period can be attributed to urbanization, economic growth, consumer preferences, fuel efficiency, safety standards, emission regulations, affordable financing options.

The passenger car market size is expected to see strong growth in the next few years. It will grow to $2.57 trillion in 2029 at a compound annual growth rate (CAGR) of 7.3%. The growth in the forecast period can be attributed to electric vehicle adoption, connectivity features, sustainability and eco-friendly cars, flexible ownership models, government incentives, hydrogen fuel cell vehicles. Major trends in the forecast period include personalization of vehicle interiors, lightweight materials for fuel efficiency, integration of augmented reality (AR) in head-up displays, compact and urban mobility solutions, vehicle subscription services.

The increasing adoption of electric vehicles is anticipated to accelerate the growth of the passenger cars market in the future. An electric vehicle (EV) is defined as a vehicle that moves using an electric motor powered by a battery, which can be charged externally. The rise in demand for passenger cars due to EVs can be attributed to several factors, including greater affordability, supportive government policies, environmental considerations, and advancements in technology. For example, in January 2024, the U.S. Energy Information Administration reported that in 2023, the combined sales of hybrid vehicles, plug-in hybrid electric vehicles, and battery electric vehicles (BEVs) accounted for 16.3% of total new light-duty vehicle (LDV) sales in the United States. Additionally, in March 2022, the Department of Energy noted that in 2021, electric vehicle (EV) sales represented 73% of all plug-in electric vehicle (PEV) sales in the country. Consequently, the growing adoption of electric vehicles is propelling the expansion of the passenger cars market.

The landscape of additive manufacturing is undergoing continuous evolution, and automobile manufacturers are actively incorporating 3D printing technology to streamline production time and reduce costs. 3D printing involves creating a three-dimensional physical object based on a digital design. This technology is employed in building prototypes of cars, creating concept models, verifying designs, and producing functional parts for test vehicles and engines. Additionally, automobile manufacturers utilize 3D printing for the construction of various tools, jigs, and fixtures essential for assembly and manufacturing processes. The application of 3D printing facilitates rapid prototyping, enhances efficiency on the assembly line, reduces turnaround time, allows greater flexibility in design, and minimizes material wastage.

Leading companies in the passenger car market are introducing new products such as the A-class SUV to cater to broader customer bases, boost sales, and increase revenue. An A-class SUV is characterized by a passenger capacity of 5 and a cargo capacity of 50.5 cu ft. For example, in February 2022, BYD Auto Co. Ltd., a China-based automobile manufacturer, unveiled the Atto 3, the inaugural A-class SUV built on BYD's e-platform 3.0. The ATTO 3 possesses a distinctive feature that emphasizes speed, energy, and dynamism, inspired by the Attosecond, the smallest unit of time in physics. Distinguishing itself as the first SUV with a sporty-themed cabin, the ATTO 3 reflects BYD's new design language. Featuring BYD's innovative Blade Battery technology as a standard component, the ATTO 3 ensures market-leading safety standards and an extended single-charge range for users.

Major companies operating in the passenger car market include Volkswagen AG, Toyoto Motor Corp, Daimler AG, Fiat Chrysler Automobiles NV, Ford Motor Co., General Motors Company, BMW AG, Honda Motor Co Ltd., Hyundai Motor Co. Ltd., SAIC Motor Co ltd., Groupe PSA, Tesla Inc., Nissan Motor Co Ltd., Kia Motors Corporation, BYD Company Limited, Renault SA, EXOR Group, Jeep, Tata Motors Limited, Suzuki Motor Corporation, Subaru Corporation, Mazda Motor Corporation, FCA Italy S.p.A., Geely Automobile Holdings Limited, Great Wall Motor Company Limited, Mitsubishi Motors Corporation, Guangzhou Automobile Group Co. Ltd., Changan Automobile Co. Ltd., Dongfeng Motor Corporation, Maserati S.p.A., Brilliance China Automotive Holdings Limited.

Asia-Pacific was the largest region in the passenger car market in 2024. Western Europe was the second-largest region in the passenger car market. The regions covered in the passenger car market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the passenger car market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The passenger car market consists of sales of pickup trucks, compact cars, and minivans. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

A passenger car is a motor vehicle primarily designed for transporting passengers, usually equipped with two or four doors and seating for up to five people. It serves to provide personal transportation for individuals and families, enabling travel for commuting, leisure, and various other purposes.

The primary categories within the passenger car market comprise hatchbacks, sedans, and utility vehicles. A hatchback is a car configured with a rear door that swings open to provide access to a cargo area. Various fuel types used in passenger cars include gasoline, diesel, and others. Engine capacities are categorized as 1000 cc, 1000-1500 cc, 1500-2000 cc, and >2000 cc. Propulsion types encompass internal combustion (IC) engines and electric vehicles.

The passenger car market research report is one of a series of new reports that provides passenger car market statistics, including passenger car industry global market size, regional shares, competitors with a passenger car market share, detailed passenger car market segments, market trends and opportunities, and any further data you may need to thrive in the passenger car industry. This passenger car market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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