Worldwide auto sales rose 10% last year, despite economic and political challenges, according to a new analysis by Jato Dynamics.

The bump in new passenger car deliveries across 151 markets to 78.3 million units was dominated by SUVs, which made up nearly half of sales, their biggest share on record, according to the report. The top vehicle seller was the midsize electric Tesla model Y SUV, the first purely electric model to lead global sales, Jato says.

“The growth seen in 2023 is remarkable, especially considering the ongoing geopolitical tensions between China and the USA; the instability generated by conflicts across Europe; the high interest rates that persisted in most of the Western world; and the high price of vehicles,” said Jato Senior Analyst Felipe Munoz.

Notably, Chinese brands passed American competitors for the first time, the report says, selling 13.4 million units, up 23%, as U.S. automakers sold 11.9 million, up 9%. Japanese brands led with 23.6 million units.

The report pointed out that China has bumped up against protective measures this year, including U.S. and European Union tariffs, as its tries to grow its overseas sales while domestic demand “shows signs of deceleration.”

Meanwhile, Europe saw the most sales growth last year, up by 16%, as governments incentivized electric-vehicle purchases and demand in Turkey surged, the report indicates.

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