World Market for Automotives

July 2025

The global automotive market is evolving fast - by 2029, 35% of sales will be EVs, 58% will be SUVs and crossovers, and 19% will feature level 3 autonomy. In 2024, BYD led global EV sales, closing in on Tesla’s BEV share. Toyota maintained global dominance in HEV, while challenging Volkswagen in ICE. Meanwhile, amid tariff uncertainties, firms must adopt diversified production strategies.

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Key findings

SUV growth continues

SUVs and Crossovers are projected to reach 58% of global light vehicle sales by 2029. Their versatility across terrains and rising consumer preference especially in Asia Pacific are driving this shift.

EV rise, ICE decline

Battery electric vehicles (BEVs) lead the electrification trend, followed by plug-in hybrid EVs (PHEVs) and hybrid EVs (HEVs). ICE vehicle sales are declining globally, pressured by regulations, fuel costs and EV infrastructure growth.

BYD emerges as EV leader

BYD leads global EV sales (BEV + PHEV), closing in on Tesla’s BEV lead. Toyota dominates HEVs, while Volkswagen adapts to shrinking ICE demand with premium EV offerings.

US and China continue to drive global growth

The US and China are the largest contributors to global volume growth over 2024-2029. Electrification, policy incentives and shifting consumer preferences are key growth drivers in both markets, amid trade tensions.

Asia Pacific leads manufacturing, margins tighten

Asia Pacific dominates global production, growing its share to 46% by 2029. However, profitability is under pressure due to overcapacity, competitive pricing and rising labour costs.

 

Our expert’s view of the Automotive industry in 2025
Scope: Passport Automotive and Mobility System
Scope: Passport Industrial System (relevant to automotive)
Automotive industry snapshot
Five key findings
SUVs, EVs and autonomy shaping future of the global automotive market
Top five trends in Automotive and Mobility
Top five trends uncovered in Automotive and Mobility
Global vehicle sales face uneven recovery amid tariff tension risks
Interest rates and consumer behaviour shape global auto financing patterns
Global autonomous vehicle trends: Level 2 leads, level 3 emerges, level 0 fades
Consumer spending on transport shifts with EV growth and regional infrastructure
US and China to drive global auto growth, led by electrification trends
South Korea leads in EV charging density; US, Germany, Japan lag behind
SUVs dominate, outpacing growth from large and executive cars
SUVs and crossovers: Asia and Americas favour large, Western Europe prefers compact
Large cars: Struggle globally with SUVs but urban demand sustains growth
Executive cars: Asia Pacific slows while Western Europe accelerates with EV sales
Toyota and Volkswagen face global sales pressure amid trade tensions and EV rise
BYD’s global EV surge: Innovation, affordability, and B2B partnerships
BYD tops global EV sales, closing in on Tesla’s BEV lead
Toyota dominates global HEV sales, while Volkswagen adapts in shrinking ICE market
Asia Pacific driving global market shift towards EVs, led by passenger cars
Asia Pacific: Global growth engine for automotives and EVs
North America: Gradual recovery amid policy and price pressures
Western Europe: EV-ready but slowed by economic headwinds and subsidy decline
Asia Pacific dominates global production, pressured by low margins
US tariffs and China expansion reshaping global auto manufacturing landscape
Top automakers drive production value growth despite shrinking volume sales
Navigating the disruption in technologies and trade tensions: SWOT for automotives
Key takeaway
Four key export markets’ largest 10 destinations
Regional comparison of petrol price and diesel price
Average age of vehicles in use
Definition: Light vehicles, passenger cars, light commercial vehicles (1)
Definition: Light vehicles, passenger cars, light commercial vehicles (2)
Definition: Powertrain
Definition: Main passenger car sales categories (1)
Definition: Main passenger car sales categories (2)
Definition: SUVs and crossovers

Automotive and Mobility

All vehicles captured by Euromonitor's vehicle volume sales data, i.e. light vehicles -passenger cars and light commercial vehicles combined. Medium and heavy-duty trucks and buses are not covered.

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