China produced one-third of global light vehicle production in 2024, up 6.6 percentage points compared to four years ago.
With an increasing trend year on year, China went from producing 23.4 million units in 2019 to 29.5 million units in 2024.
With those volumes, China increased its share of global light vehicle production from 26.7% in 2019 to 33.3% in 2024.
This nation has positioned itself as a leading player in light vehicle production. Its industrial capacity is ample. Labor costs are low. Added to this is an efficient logistics infrastructure.
In addition, it invests heavily in innovation. It also has an integrated supply chain and receives constant support from the government.
Global light vehicle production
Worldwide, 88 million 586,000 light vehicles were manufactured in 2024, a year-on-year increase of 1 percent.
Contrary to the Chinese production trajectory, the United States reduced its manufacturing in this segment, from 10.5 to 10.2 million units from 2019 to 2024.
This decline implies a 2.9 percent drop cumulatively and a 0.4 percentage point reduction in its share of total global light vehicle production, reaching 11.6 percent in 2024.
Below are the top six producers of light vehicles in the world, in thousands of units in 2024 and their growth rate compared to 2019, according to USITC data:
- China: 29,506 (+26.1 percent).
- United States: 10,237 (-2.9 percent).
- Japan: 7,768 (-15.3 percent).
- India: 5,633 (+33.5 percent).
- Germany: 4,069 (-17.7 percent).
- South Korea: 4,069 (+5.1 percent).
U.S. Tariffs
On March 26, 2025, President Donald Trump announced new tariffs. A 25 percent levy was imposed on imports of automobiles and certain auto parts. The measure is covered by Section 232 of the Trade Expansion Act of 1962. The tariffs became effective on April 3 for vehicles. In the case of auto parts, the date was May 3. There were partial exemptions for products that meet USMCA standards.
Section 232 allows the president to act if imports threaten national security. In this case, the decision was based on a 2019 investigation. According to that report, the auto imports were putting U.S. security at risk.