Uneven recovery: Asia powers 2025 auto market growth
Global vehicle production and sales rose in 2025, with output reaching 96.4 million units and sales 99.8 million units, as Asia drove much of the growth and China remained the world's largest vehicle market, according to a report presented in Beijing on Thursday.
Data released by the International Organization of Motor Vehicle Manufacturers (OICA) showed that global vehicle production rose 3.9 percent year-on-year in 2025, while sales increased 4.7 percent.
The recovery, however, remained uneven, with Europe and other established auto markets facing weak demand, policy uncertainty and high transition costs, while Asia and other emerging industrial centers provided the main momentum.
Shailesh Chandra, president of OICA, said the auto industry is facing growing pressure from technological shifts, geopolitical tensions and diverging policy approaches, underscoring the importance of international cooperation. François Roudier, secretary-general of OICA, said the figures also reflected a broader shift in industrial competitiveness.
Asia remained the main driver of global growth. Production in the Asia-Pacific region rose 7.6 percent to 59.2 million vehicles in 2025, accounting for more than 61 percent of global output. Sales across Asia, Oceania and the Middle East rose 7.1 percent to 55.02 million units, underscoring the region's growing weight on both the production and demand sides.
China was at the center of that shift. Vehicle production reached 34.5 million units in 2025, while new energy vehicle output rose 29 percent to 16.63 million units. India also emerged as a major source of growth, while Japan remained a key manufacturing base.
Europe, by contrast, remained broadly flat. Regional production slipped 0.8 percent to 17.2 million vehicles, while sales edged down 0.4 percent to 18.63 million. Germany remained the region's largest production base but declines in the United Kingdom and Italy underscored continued pressure in parts of the auto industry.
In the Americas, production fell 2.1 percent to 18.74 million vehicles, even as sales rose 2.9 percent to 24.86 million, continuing to outpace output. Africa, though still small in absolute terms, posted strong growth, with sales rising 22 percent to 1.29 million vehicles.
A report released by the China Association of Automobile Manufacturers (CAAM) showed that China's vehicle production and sales ranked first in the world for a 17th consecutive year in 2025. Domestic sales totaled 27.3 million units, including 24.1 million passenger vehicles and 3.2 million commercial vehicles. Exports rose to 7.1 million units, including 6.04 million passenger vehicles and 1.06 million commercial vehicles.
New energy vehicles remained a standout segment. Domestic sales reached 13.9 million units, while exports stood at 2.62 million. Jiang Jianna, a research fellow at CAAM, said China's auto industry is advancing in electrification and intelligent connected vehicle technologies. Jiang said Level 2 driver-assistance functions have entered large-scale adoption in China, while the first batch of Level 3 conditionally automated vehicles has received approval for market entry.
Fu Bingfeng, secretary-general of CAAM, said China will continue to deepen exchanges and cooperation with the global auto industry and help maintain stable industrial and supply chains.
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