⋆An updated version of this forecast report will be released every quarter

-According to a report by GlobalData as of Q2 2025, global light vehicle sales are forecast to increase by 1.3% YoY to 89.9 mn.

-The latest update to the Global Light Vehicle (LV) market forecast has resulted in a significant reduction in projections, particularly for North America. The automotive sector is facing additional tariffs of 25% on imported vehicles and parts (though there are caveats to this on imports from Canada and Mexico), which are expected to raise vehicle prices in the US. While there is some expectation of easing these tariffs in the medium to long term, the overall tariff environment is set to remain more restrictive than before.

-In the Asia-Pacific region, the forecast has been adjusted downward by approximately 300,000 units/year over the next five years, with China being the focal point due to anticipated economic drag from US trade policy changes. Despite this, China is expected to experience growth this year, driven by government initiatives promoting vehicle scrappage and the uptake of NEVs. Other markets, such as Japan and India, are showing signs of recovery or new market highs. In Europe, the economic outlook has worsened, leading to a downward revision of around 300,000 units/year for the next few years, ensuring the volume forecast is firmly in contraction territory for 2025. Western Europe is primarily affected due to relative market size versus Eastern Europe, and connections to US trade.