Posts in category: Auto Industry

China’s automotive sector is targeting annual sales surpassing 40 million vehicles within the next five years, as forecast by the China Passenger Car Association (CPCA) secretary general, Cui Dongshu.

The projections also include exports, which are expected to reach ten million units in the international market.

Additionally, Dongshu’s projections suggest a potential doubling of China’s auto exports by 2030.

He emphasises the growth opportunities that lie ahead for the country in both domestic and international markets.

Highlighting the disparity in vehicle ownership rates, Dongshu noted that the country’s current rate stands at 250 cars per 1,000 people, which is considerably lower than that of developed nations.

Dongshu, as reported by South China Morning Post, said: “There is still vast potential for market expansion in China’s less developed regions, such as mid-western districts and rural areas, where car ownership levels could gradually surpass those in metropolises like Beijing and Shanghai.”

by https://www.just-auto.com/news/china-auto-industry/?cf-view

New car prices have held about steady since 2023, with the August 2025 average of $49,077 about the same as it was two years prior. Even the introduction of tariffs hasn’t had much of an impact on sticker prices yet.

But as those levies are seemingly staying put for a while, analysts are warning that steep increases could be looming down the road.

Automakers would prefer to avoid that. Price point is the most important factor when it comes to selling a car. “Even though it’s the last thing an automaker determines, it is the most crucial,” says Ivan Drury, an analyst with Edmunds.

Prices are already near record levels, and consumers are holding onto cars longer than ever. But as tariff charges pile up, automakers are exploring ways to recoup those costs without significantly increasing the sticker price, which risks scaring away buyers.

by https://qz.com/new-car-sales-sticker-stock-price-hikes-increase-prices

ACEA’s Economic and Market Report provides data on vehicle sales, production, and trade in Europe and globally.

The EU’s economic outlook remains cautiously optimistic, with GDP expected to grow 1.1% in 2025 amid trade tensions and the United States’ tariff changes. Headline inflation is forecast to ease to 2.3% in 2025 and average 1.9% in 2026, slightly below the European Central Bank (ECB)’s 2% target. Labour market conditions remain strong, with employment set to rise and the unemployment rate projected to hit a historic low of 5.7% in 2026.

Global car markets showed mixed trends in the first half of 2025. Worldwide registrations rose 5% to 37.4 million units, led by China’s 12% surge, supported by scrappage incentives and new energy vehicle policies. North America recorded modest growth of 2.5%, although concerns remain about weakening demand later in the year. In contrast, Europe trailed behind, with overall registrations falling by 2.4% and the EU market down 1.9%, although Türkiye, the EFTA countries, and the UK provided some stability.

The EU’s car production landscape remained highly concentrated, with Germany producing 20% of cars sold in the EU, followed by Spain, Czechia, France, and Slovakia. Together, EU-based manufacturers supplied 74% of the market. Meanwhile, cars made in China now account for 6% of EU sales, highlighting both the rising competitiveness of Chinese brands and the growing role of imports.

Global car production grew by 3.5% to 37.7 million. Asia dominated with 60.1% of total output while the EU represented 15.9%. European production contracted by 2.6%, hindered by stricter CO2 targets, high energy costs, and tariffs, whereas China’s output soared by 12.3% on the back of policy support and export gains. Despite the challenges, EU-made cars retained strong international demand, with over one-third sold outside the bloc. The United Kingdom, United States, and Türkiye remained leading destinations; on the other hand, sales in China continued to drop amid local competition and new energy vehicle trends.

Trade performance in the EU car sector also experienced some challenges. Both imports and exports fell by 3.3%, narrowing further the trade surplus. Imports coming from China increased, while exports to China dropped sharply by 42%. Meanwhile, the UK stood out with export values rising by 8.1%, whereas exports to the US declined 13.6%.

Europe’s commercial vehicle market faced a tough first half of 2025, with van, truck, and bus registrations all declining. The downturn reflects both a normalisation toward long-term trends and ongoing challenges in fleet renewal and the transition to zero-emission powertrains. Some markets, like Spain for vans, showed resilience, but overall demand remained weak across major EU markets.

Commercial vehicle production showed clear regional differences in the first half of 2025. Global van production grew by 1%, while Europe declined by 6.8%, mainly due to sharp drops in the EU and the UK. Meanwhile, truck and bus production in the EU are expected to recover by 5.7% and 6.2%, respectively, by year-end.

Segment trade balances diverged notably. The van sector’s trade surplus halved, truck trade surplus narrowed by 12.1%, and the bus segment’s trade deficit exceeded €1.2 billion.

by acea.auto