INDUSTRY REPORT
Global automotive market trends
According to research published by analyst MarketsandMarkets , global light vehicle sales were 84.0 million units in 2024 and are projected to reach 85.1 million units in 2025 , witnessing a YoY growth of 1.3 % from 2024 to 2025 .
“ The growth of light vehicle sales is influenced by various factors such as the adoption of electric vehicles ( especially hybrid vehicles ); the development and manufacturing of long-range batteries ; the introduction of autonomous vehicles and initiatives being taken by OEMs to commercialise such vehicles ; the deployment of 5G connectivity ; trends related to used cars and online sales of used and new cars ,” it said .
“ Countries such as China , Brazil , South Korea and India have increased their investments in the development of the automotive industry due to their growing urban population and economies . Due to such investments , the demand for the automotive market will be higher during the forecast period ,” it added .
According to the analyst , the growth in sales of hybrid electric cars with enhanced ranges is shifting trends in the automotive market . Numerous OEMs have announced plans to expand their hybrid vehicle portfolio including Toyota ( Japan ), Honda ( Japan ), Volkswagen ( Germany ), Ford ( U . S .) and General Motors ( Germany ). OEMs such as General Motors and Ford have revived plans for introducing new HEV and PHEV models from 2026-27 onwards .
“ The Asia-Pacific region holds the major share in the sales volume of PV combined . The major factor is the intensive manufacturing and export of cars in China . The Chinese market is the world ’ s largest market in terms of vehicle sales as well as production . In 2024 , China ’ s sales volume for light vehicles was over 26 million units , with a share of around 50 % globally . China is the most dominant nation in the automotive industry re supply of raw materials , manufacturing and sales . It has the most potent supply chain of EV batteries . Over 50 % of EV batteries are manufactured in China and around 75 % of the components of EV batteries are manufactured in China . These Chinese manufacturers want to expand their services and acquire additional market share worldwide . The Asia region has seen growth in automobile production in 2023 and 2024 . Continuing this trend , the Asia region will dominate the market in 2025 ,” confirmed the analyst .
It confirmed that there has been a constant increase in sales of luxury and ultra-luxury cars in regions such as Asia-Pacific . OEMs are developing and trying to incorporate more ultra-luxury features and are
Image : Shutterstock . com .
Analyst S & P Global Mobility forecasts 89.6 million new vehicle sales worldwide in 2025 , reflecting cautious recovery growth
The New SUV from Wolfsburg : the Volkswagen Tayron is now rolling off the production line at Volkswagen ’ s main plant .
Left : Christian Levin ( President and CEO of Scania ) and newly elected chair of the Commercial Vehicles Board of ACEA ( European Automobile Manufacturers ’ Association ).
monetising many such features as a service model . The rise in sales of such cars is due to the increasing number of highnet-worth individuals in this region . This trend is expected to continue and flourish in 2025 .
Analyst S & P Global Mobility forecasts 89.6 million new vehicle sales worldwide in 2025 , reflecting cautious recovery growth .
“ Automotive forecasts have been downgraded across the board , reflecting expected post-election U . S . policy shifts . Resulting impacts to vehicle demand will be significant especially interest rates , trade flows , sourcing and BEV adoption rates . The global automotive sector remains focused on managing production and inventory levels in response to regional demand patterns , which include slower growth in key markets ( in some cases , related to slower electric vehicle adoption rates ),” it confirmed .
The forecast outlook incorporates several factors including improved supply ; tariff impacts ; still-high interest rates ; affordability challenges ; elevated new vehicle prices ; uneven consumer confidence ; energy price and supply concerns ; risks in auto lending and the challenges of electrification . In the U . S ., it expects new President Donald Trump to “ hit the ground running ” in 2025 with a range of policy priorities including universal tariffs , deregulation and wavering BEV support .
“ 2025 is shaping up to be ultra-challenging for the auto industry , as key regional demand factors limit demand potential and the new U . S . administration adds fresh uncertainty from day one ,” said Colin Couchman , executive director of global light vehicle forecasting for S & P Global Mobility . “ A key concern is how ‘ natural ’ EV demand fares as governments rethink policy support , especially incentives and subsidies , industrial policy , tariffs and rapidly evolving OEM target setting ,” concluded the analyst .
Global light vehicle production in 2024 was expected to finish at 89.1- million units , it said , a 1.6 % deterioration compared to 2023 levels with all regions ( except mainland China and South America ) experiencing decline .
“ Despite the gloom , electric vehicles remain an important automotive growth sector , and we project global sales for battery electric passenger vehicles to post 15.1 million units for 2025 , up by 30 % compared to 2024 levels , accounting for an estimated 16.7 % of global light vehicle sales . For reference , 2024 posted an estimated 11.6 million BEVs globally , for 13.2 % market share ,” explained S & P Global Mobility .
Looking beyond 2025 , many uncertainties persist regarding the pace of electrification , especially regarding charging infrastructure ; grid power ;
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