The lagging behind of the US automotive industry in the world

The lagging behind of the US automotive industry in the world

José Carlos Díaz Silva[1] , OBELA[2]

Between 2018 and 2024, US automotive companies have reduced their presence in the global market. This is one of the most important industries, in which the major powers compete for leadership, both in innovation and in control of international production chains and sales quotas.  Therefore, falling behind in car manufacturing means losing economic influence. The policies of the Biden and Trump administrations have sought to restore the competitiveness of major US manufacturers, mainly GM and Ford, and to a lesser extent Stellantis (which is only partly US-owned) and Tesla, with no success in sight. This article will analyze data on the distribution of global auto markets and how US companies, like their German counterparts—albeit to a lesser extent—have lost competitiveness, not only to their Chinese peers, but also to Asian brands such as Toyota (Japanese) and Hyundai (Korean). 

Tables 1 and 2 show the top 15 brands worldwide and their market share in 2018 and 2024. During this period, the only non-Chinese brand to maintain its position was Toyota, which slightly increased its global market share from 11.5% to 11.6%; in 2024, it sold 11 million vehicles, compared to 10.5 million in 2018. In contrast, American brands suffered the greatest losses. GM, once the world's leading brand, saw its market share fall from 9.6% to 6.3% and its absolute numbers drop from 8.8 million sales in 2018 to 6 million in 2024, a 31.9% decline in sales. The same happened with Ford, whose share fell from 6.3% to 4.7%, and sales from 5.7 to 4.5 million, a 22% drop. Therefore, reducing the US lag does not require selling more, but first recovering what has been lost. In those seven years, in addition to Toyota, the winners have been Korea's Hyundai (which, although it sold fewer units, increased its sales share) and Chinese manufacturers. In 2018, the only Chinese company in the top 15 was Geely, but in 2024, Changan and BYD joined the list. Together, the latter two sold 6.9 million cars, exceeding the market loss of the American companies. BYD, which only produces electric vehicles (EVs), has consolidated its position in the market. In the electric segment, GM and Ford have not been able to compete, despite the investments they have made, so they are unlikely to regain their lost positions.

When consolidating the data by country (see Table 3), it can be seen that all countries except China have lost market share. In the case of the US, its share fell by 19%. This figure is lower than the individual cases of GM and Ford because the formation of the Stellantis conglomerate, which included Chrysler, and the French group PSA (Peugeot) in 2021, stabilized sales for both. However, Stellantis faces the same competitiveness challenges as other US companies: quality issues and high prices, which prevent it from competing with Asian brands, and  an inability to produce high-quality, low-cost EVs. The Big Three in the US have failed in the transition to EVs and, since 2024, have announced lower investments, plant closures, job cuts, and delays in the introduction of new models. In addition, on September 30, 2025, Trump announced the end of subsidies for the purchase of electric cars, which is expected to generate significant losses for GM of up to $1.6 billion and a delay in the production and adoption of EVs in the US. 

In 2018, the world's top 15 brands accounted for 85.7% of sales, but by 2024, this figure will fall to just 73%, indicating that the market has become less concentrated. The emergence of new competitors, especially Chinese ones (Jac, Chirey, Great Wall Motors, among others), has led to a shift in global market share. The rise of these manufacturers poses greater challenges for American brands. 

In conclusion, US manufacturers have lost importance in the global market, and the trend shows that they will not be able to regain their positions. Key companies GM and Ford only dominate in the US (see Tables 4 and 5), a market that, although the second largest, has shrunk. Meanwhile, GM lost the competition in China, the largest market. In other regions, such as Latin America, American manufacturers have also lost ground, with GM no longer being the most important brand in Brazil. In Mexico, it remains in second place (with its Chevrolet brand), but has lost market share (to Toyota) and is selling fewer cars. These two markets, in addition to being the largest in Latin America, are on the rise, with Asian brands growing. In Argentina, GM is no longer among the top brands . In short, the trade war, import substitution, and repatriation of investments launched from Washington are too late and unlikely to reverse the situation in the medium and long term. Asian companies have surpassed US companies in innovation and are better positioned in the market.