Global automobile sales are expected to witness modest growth in 2025, driven by improved vehicle supplies and a stable supply chain, according to a Bloomberg report.
However, the report expects production levels to decline as auto companies try to reduce excess inventory, according to S&P Global Mobility estimates.
Production decline
S&P forecasts indicate that sales of light vehicles – including personal cars, SUVs and pickup trucks – will grow by 1.7% in 2025, reaching 89.6 million units.
Despite this, global production of light vehicles is expected to decline by 0.4% to 88.7 million units, according to Bloomberg.
The United States is expected to record a 2.9% decline in production, reaching 9.9 million vehicles, and S&P indicated that China and South America are the only regions that will see an increase in production.
Trade tensions
Mark Fulthrop, executive director of global light vehicle forecasts at S&P Global Mobility, said that global trade tensions will significantly impact the production landscape. “A slowdown in global trade and expected retaliatory measures will dramatically change the production landscape,” he said.
The report also highlighted the impact of threats, such as US President-elect Donald Trump’s pledge to impose higher tariffs on car imports and eliminate government subsidies that stimulate the adoption of electric cars.
These policies may constitute an additional obstacle to the stability of global production, according to the report.
Strong momentum for electric vehicles
Despite uncertainty about government support for electric vehicles in the United States, S&P Global Mobility expects electric vehicle sales to continue to grow at a rapid pace.
It is estimated that there will be a 30% jump in global electric vehicle sales in 2025, reaching 15.1 million units, representing about 17% of total light vehicle sales.
The Bloomberg report explained that these expectations come at a time when auto companies are reevaluating their strategies amid concerns about the flexibility of global demand.
It is clear that economic and political challenges will play a major role in reshaping the automotive sector in the coming years.
