Discover key insights into the future of automotive.
January 10, 2025
Written by Turian Biel
Table of Contents
- Projected Global Car Production Trends for 2025
- Global Light Vehicle Production Estimates
- North American Vehicle Manufacturing Projections
- China's Dominance in Vehicle Production
- Electric Vehicle Production Growth
- European Car Market Recovery
- Luxury Car Market Growth
- Impact of Autonomous Vehicles on Production
- Used Car Market Projections
- Emerging Markets Driving Growth
- Future of Car Registrations
- Emerging Trends in Automotive Production for 2025
- Conclusion
Projected Global Car Production Trends for 2025
Global Light Vehicle Production Estimates
According to a report by GlobalData, global light vehicle production is projected to reach 94.0 million units in 2025. This increase reflects a recovery from previous years impacted by supply chain disruptions and a growing demand for vehicles worldwide. As manufacturers adapt to changing market conditions, the production levels are expected to stabilize, contributing to the overall growth of the automotive industry.
North American Vehicle Manufacturing Projections
In North America, it is projected that approximately 16 million light vehicles will be manufactured in 2025. This figure indicates a significant recovery from the downturns experienced in previous years, driven by increasing consumer demand and a resurgence in manufacturing capabilities across the region.
China's Dominance in Vehicle Production
China continues to be the world’s largest vehicle market, with domestic production expected to reach 35 million vehicles by 2025. This growth is fueled by a robust domestic demand and the government's support for the automotive sector, particularly in electric vehicle production, which is becoming increasingly important in the global market.
Electric Vehicle Production Growth
The electric vehicle (EV) market is projected to grow significantly, with EV production expected to account for approximately 30% of total car production by 2025. This shift towards electric vehicles is driven by consumer preferences for sustainable options and regulatory pressures aimed at reducing carbon emissions.
European Car Market Recovery
In Europe, new car sales are projected to rise by 4.1% in 2025, reaching approximately 13.7 million new passenger car registrations. This recovery follows a predicted increase of 2.2% in 2024, indicating a positive trend in consumer confidence and market stability.
Luxury Car Market Growth
The luxury car market is also expected to see significant growth, projected to increase from $738.63 billion in 2024 to $967.65 billion by 2029. This reflects an annual growth rate of 5.55%, driven by rising disposable incomes and a growing demand for premium vehicles.
Impact of Autonomous Vehicles on Production
As many as 3.5 million autonomous vehicles could be on U.S. roads by 2025, indicating a significant shift in the automotive landscape. This growth in autonomous vehicle production is expected to influence manufacturing strategies and consumer preferences in the coming years.
Used Car Market Projections
The global used car market size is projected to reach USD 2.02 trillion in 2025, growing at a CAGR of 6.0% from 2025 to 2030. This growth reflects changing consumer behaviors and the increasing popularity of pre-owned vehicles as a cost-effective alternative to new cars.
Emerging Markets Driving Growth
Emerging markets such as India and Indonesia are expected to be key contributors to the automotive industry between 2025 and 2030, driven by a rising middle class and Gen Z population, which will redefine product development and marketing strategies in the sector .
Future of Car Registrations
In 2025, new car registrations are projected to see a significant shift, with electric vehicles (EVs) expected to rise by 165.4%. This increase comes as petrol/MHEV registrations are predicted to decrease from 51% to 35%, indicating a major transition in consumer preferences towards more sustainable vehicle options.
Emerging Trends in Automotive Production for 2025
Investment in Electric Vehicle Infrastructure
To support the anticipated growth in electric vehicle production, significant investments are required in charging infrastructure. A study by CEEW Centre for Energy Finance recognized a US$ 206 billion opportunity for electric vehicles in India by 2030, necessitating a US$ 180 billion investment in vehicle manufacturing and charging infrastructure. This investment is crucial for ensuring that the necessary infrastructure keeps pace with the growing number of EVs on the road.
Impact of Trade Policies on Production
Trade policies and international relations are expected to play a significant role in shaping automotive production in 2025. Challenges such as trade tensions and competition from Chinese EV manufacturers may impact growth, as highlighted in a report discussing the automotive industry's outlook. Manufacturers will need to navigate these complexities to maintain production levels and meet consumer demand.
Technological Advancements in Manufacturing
The automotive industry is witnessing rapid technological advancements that are transforming manufacturing processes. The AMTS 2025, scheduled from July 9 to July 11, 2025, in Shanghai, is expected to showcase a diverse range of automotive manufacturing technologies, including car body stamping, welding, and intelligent production line logistics . These innovations are aimed at improving efficiency and reducing costs in vehicle production.
Conclusion
The automotive industry is poised for significant changes in 2025, driven by advancements in technology, shifts in consumer preferences towards electric vehicles, and the impact of global trade dynamics. As manufacturers adapt to these trends, the landscape of car production will evolve, presenting both challenges and opportunities for growth in the sector.