TrendForce Predicts Global New Car Sales to Reach 90.6 Million Units in 2025
TrendForce’s latest research indicates that global sales of new cars are projected to hit 90.6 million units in 2025, showing a 2.4% year-over-year increase. The largest share of these sales is expected to come from China at 29%, followed by the US at 18% and Western Europe at 15%. However, the US market faces uncertainty due to tariffs, while competition in China’s smart vehicle sector is set to intensify.
Recent developments in the US, including President Donald Trump’s announcement of a 25% tariff on imported vehicles, have brought about concerns regarding the future of new car sales. If implemented, this tariff could impact the interconnected automotive supply chain between the US, Canada, and Mexico. With over ten global automakers having production facilities in Mexico, any disruption in this supply chain could lead to increased costs for consumers.
While automakers may consider relocating production to mitigate the impact of tariffs, the process is complex and may result in higher vehicle prices for consumers. This could potentially lead to a shift in consumer behavior, with individuals delaying purchases or turning to leasing and the used car market instead.
Despite the challenges posed by tariffs, other factors such as interest rate cuts, inflation trends, and automakers’ strategies will also play a role in shaping the new car sales market. In China, the largest auto market globally, steady growth is expected in 2025, supported by government policies that promote the adoption of new energy vehicles (NEVs).
NEVs are anticipated to make up 50% of China’s new car sales in 2025, signaling a shift towards cleaner and more sustainable transportation options. Leading automakers in China are also focusing on integrating smart features into their vehicles to attract customers and stay competitive in the market.
BYD, a prominent automaker in China, is leading the charge towards “smart driving for all” by incorporating advanced driver-assistance technologies into their affordable models. This move is expected to drive the adoption of smart driving technologies across the country while intensifying competition within the local smart vehicle supply chain.
