Financial Report: Global Automotive Industry Outlook 2025

I. Executive Summary

The global automotive industry in 2025 stands at a pivotal juncture, characterized by a complex interplay of technological transformation, geopolitical volatility, and evolving consumer dynamics. The global light vehicle market is projected to reach between 85.1 million and 91.6 million units, indicating modest growth from 2024, yet this range underscores significant market uncertainty.1 Key financial trends include substantial OEM investments in electrification, a burgeoning shift towards software-defined vehicles and service-oriented revenue models, and persistent supply chain cost pressures exacerbated by trade tariffs. Regionally, China maintains volume dominance despite an intense price war, while the United States navigates growth amidst policy uncertainties. Europe faces economic headwinds and the financial strain of ambitious emission regulations, contrasting with Japan's export contraction due to tariffs. India demonstrates robust domestic demand, and Mexico leverages nearshoring opportunities, both contending with unique challenges. Overall, traditional manufacturing profit margins are under increasing pressure, necessitating strategic diversification of revenue streams and relentless cost management for sustained financial health.

II. Global Automotive Industry Financial Landscape in 2025

The automotive sector worldwide is undergoing a profound transformation, with its financial health in 2025 shaped by a confluence of market performance, technological advancements, supply chain dynamics, consumer behavior, and regulatory shifts.

Overall Market Performance and Outlook

The global light vehicle market is forecasted to achieve sales between 85.1 million and 91.6 million units in 2025, representing a modest year-over-year growth ranging from 1.3% to 3.4% compared to 2024 estimates.1 This projected growth is supported by positive factors such as declining interest rates, the introduction of new vehicle models, and intense competitive pressures across various segments.1 Original Equipment Manufacturers (OEMs) are actively contributing to market expansion through innovations that deliver more cost-effective and feature-rich vehicles, particularly evident in regions like Asia-Pacific, where rising per capita income fuels demand.2

However, this expansion is tempered by several significant factors. Persistent global uncertainty, including geopolitical unrest, and a general economic sluggishness, notably in China with its depressed property market, pose ongoing risks to market stability.1 The timing, scale, and specific nature of potential trade obstacles, such as the imposition of tariffs, remain a considerable downside concern for the industry.1 Furthermore, the fluctuating prices of vehicles and fossil fuels, driven by continuous geopolitical instability around the world, continue to exert pressure on overall market affordability and operational costs.2

The notable discrepancy observed in global light vehicle sales forecasts for 2025, with GlobalData projecting 91.6 million units and MarketsandMarkets forecasting 85.1 million units, is not merely a statistical variance. This difference highlights a fundamental lack of consensus among market analysts, signaling a higher degree of inherent market uncertainty. Such divergence stems from differing assumptions regarding the pace of global economic recovery, the precise impact of geopolitical events like tariffs and regional conflicts, the speed and scale of electric vehicle (EV) adoption, and the resilience of consumer purchasing power. For financial stakeholders, this means that revenue projections and strategic planning must account for a wider range of potential outcomes, potentially requiring more flexible investment strategies and robust contingency planning to navigate a volatile and unpredictable automotive landscape.

Major Financial Trends Shaping the Industry

The Electrification Imperative

The automotive industry's commitment to electrification continues to be a dominant financial trend. OEMs are allocating substantial capital towards achieving zero-emission targets, with planned investments exceeding USD 500 billion by 2030 for EV production facilities.2 In 2025 alone, at least 10 new manufacturing plants are expected to commence operations, driven by significant investments from major players such as Hyundai, Kia, Toyota, Tesla, Maruti, and Tata Motors, all focusing on EV-specific facilities.2 A positive financial development supporting this transition is the anticipated decrease in Lithium-ion battery prices, projected to fall below USD 100/KWh in 2025.2 This reduction is critical for enhancing EV affordability and improving production margins.

While the long-term trajectory points towards Battery Electric Vehicles (BEVs), 2025 is notably characterized by consistent and significant growth in the Hybrid Electric Vehicle (HEV) segment, a trend expected to persist.2 This strategic pivot from an aggressive, singular focus on BEVs to a more balanced and financially pragmatic approach, heavily favoring HEVs in the near term, is a critical development. This shift is driven by several factors: softening demand for pure BEVs, high vehicle costs, insufficient charging infrastructure, reduced government incentives, and a general lack of mass-market enthusiasm for fully electric models.4 OEMs are increasingly prioritizing investments in hybrids and expanding their offerings, recognizing that HEVs offer a "bridging technology" that can generate more reliable profits in the current market environment, allowing manufacturers to recoup investments while the broader BEV ecosystem matures. Despite these challenges, EVs are still projected to constitute as much as 23% of the global light-vehicle market by 2025.6 Global plugin vehicle registrations saw a 25% increase in March 2025 compared to March 2024, with BEVs alone representing 17% of the overall auto market year-to-date.7

The anticipated surge in used Electric Vehicles (EVs) returning to the market, with approximately one million leased EVs expected by 2027, presents a complex financial dynamic.8 These used EVs are currently priced around $2,000 below comparable Internal Combustion Engine (ICE) vehicles, and BEV residual values are struggling.8 This influx of more affordable used EVs creates a crucial entry point for budget-conscious consumers, potentially absorbing demand that might otherwise go to new vehicles. For dealerships, the used car market, particularly for EVs, is becoming a significant profit center, sometimes even more profitable than new car sales, and is vital for customer retention.9 However, this trend simultaneously poses a considerable challenge for new EV sales pricing and for OEM financing arms and leasing companies. The accelerated depreciation of EVs directly impacts the profitability of leasing programs and the balance sheets of financial institutions holding these assets, requiring careful management of a depreciating asset base and potential adjustments to new EV pricing and leasing strategies to maintain competitiveness.

Technological Revolution and New Revenue Models

The automotive industry is undergoing a profound technological revolution that is fundamentally reshaping its revenue models. The automotive AI software market, for instance, is projected to reach approximately $200 billion by 2032.6 Artificial intelligence is transforming nearly every facet of the industry, from enhancing in-car features like advanced sensors, virtual assistants, intuitive infotainment systems, and vehicle safety, to improving external operations such as dynamic pricing, supply chain management, and production efficiency.6

Connected car technologies represent another significant growth area. The global connected car market is expected to expand substantially, from $56 billion in 2020 to $121 billion in 2025.6 Experts anticipate that over 400 million connected vehicles will be in use by 2025, a trend fueled by strategic partnerships between technology companies and automakers.6 This expansion is redefining how consumers interact with their vehicles and fundamentally altering competitive dynamics within the market.6

Autonomous driving technology is also accelerating. The pace of driverless car development is quickening, supported by growing consumer confidence.6 The autonomous car market alone is projected to reach $60.3 billion in 2025.3 While fully autonomous taxi services are gaining traction, with Baidu's Apollo Go, for example, targeting profitability in 2025, semi-autonomous cars (SAE Level 2) are expected to dominate the market in the near term, with 48% of light vehicles sold across major economies anticipated to include such features by 2025.4

A critical financial and strategic shift is the industry's move towards "servitization," or offering "everything as a service" (XaaS), a trend set to grow significantly in 2025.6 The global XaaS market is projected to reach $3,221.96 billion by 2030.6 This model extends beyond traditional vehicle sales to include bundled mobility services, subscriptions based on vehicle data (such as insurance packages or services to reduce carbon footprint), and continuous over-the-air (OTA) updates for new features and bug fixes.6 Car subscription models, offering flexible and cost-effective mobility solutions, exemplify this evolution.10 This represents a fundamental transformation in automotive revenue streams, moving beyond one-time vehicle sales to recurring, data-driven services. This shift is a significant financial opportunity for automakers to diversify their income, increase customer lifetime value, and potentially achieve higher profit margins, though it necessitates substantial investment in software development, data infrastructure, and the development of new business models.

Supply Chain Resilience and Cost Pressures

The automotive industry in 2025 is grappling with persistent and escalating cost pressures across its supply chain, identified as the dominant concern by 77% of survey participants in early 2025.11 A major financial challenge stems from the imposition of US tariffs, including a 25% duty on imported vehicles and parts, which took effect in April and May 2025.1 These tariffs are projected to add an estimated $110 billion to $160 billion annually in costs to the industry, potentially impacting 20% of U.S. new-vehicle market revenues.12 This could lead to a reduction in sales by approximately one million units in the US alone.1 Automakers like General Motors project a $4-5 billion tariff impact in 2025 and are responding with strategic shifts, including re-shoring production.11 Ford has already increased prices on some Mexico-built models.11

The transition to electric vehicles, while crucial for the future, adds significant complexity and cost to logistics. EVs are heavier and often built on more intricate modular platforms, which affects loading capacity per carrier and processing speed.11 Lithium-ion batteries, a core component of EVs, require specialized packaging, hazardous goods handling, and robust reverse logistics infrastructure to comply with evolving regulatory frameworks, all of which contribute to increased expenses.11 While localization is a strategic response to mitigate tariffs and build resilience, it is neither simple nor inexpensive. Shifting assembly operations can be relatively quick, but reconfiguring upstream inputs such as batteries or semiconductor chips is far more challenging and costly.11

Furthermore, consolidated supply chains, particularly for critical components like batteries and semiconductors, remain a significant vulnerability. Disruptions stemming from geopolitical tensions, especially in the Asia-Pacific region where a large production capacity for semiconductor chips is concentrated, or from natural disasters, can negatively impact global production, pricing, and delivery schedules.2 Persistent skilled labor shortages also contribute to elevated operational costs.11 The confluence of these factors – rising cost pressures, the direct financial impact of tariffs (potentially billions of dollars in added costs and lost sales), and the inherent logistical and operational complexities of electrification – indicates a systemic and sustained increase in the cost base for automotive manufacturers. This inevitably leads to significant pressure on profit margins across the industry, necessitating either aggressive cost-cutting measures or higher consumer prices, which could in turn dampen overall demand.

Consumer Spending and Financing Trends

Consumer spending and financing trends in 2025 present a mixed but generally supportive picture for the automotive industry. Despite ongoing price pressures, an improvement in vehicle affordability is anticipated, driven by expanding credit availability and a decline in auto loan rates.3 Data from Q1 2025 indicates that while the average loan amount for a new vehicle increased, the average interest rate dropped, making financing more accessible.15

The used car market, particularly for electric vehicles, is on the cusp of a significant transformation, with approximately one million leased EVs projected to return to the market by 2027.8 Used EVs are currently priced about $2,000 below comparable ICE vehicles, making them an attractive option for budget-conscious buyers.8 Dealers are reporting higher margins from used cars compared to new cars, highlighting the strategic importance of the used market for profitability and customer retention.9 The convenience offered by digital platforms is also increasingly influencing consumer behavior, leading to a notable shift towards online vehicle purchases.16 While improving affordability is a positive sign, overall consumer sentiment continues to be influenced by broader economic uncertainties and the evolving political landscape.1

This dynamic suggests a bifurcated financial market in 2025. The new car market, while facing price pressures due to technological content and tariffs, is supported by improving affordability from declining loan rates. Concurrently, the used car market is experiencing robust growth, particularly in the EV segment, and is emerging as a significant profit center for dealerships. This indicates a strategic imperative for OEMs and dealers to optimize revenue and profitability across both new and used vehicle segments. The robust used market is positioned to absorb demand from price-sensitive consumers who might otherwise be priced out of the new vehicle market, making an integrated strategy across both segments crucial for overall financial health.

Regulatory Environment and Financial Penalties

The global automotive industry in 2025 is navigating a complex and often divergent regulatory landscape, with significant financial implications. In Europe, new carbon emission standards, effective January 1, 2025, cap new cars' average emissions at 93.6 grams per kilometer.17 Non-compliant automakers face the threat of substantial fines, potentially up to 15 billion euros, compelling manufacturers to ensure at least 20% of their total sales comprise electric vehicles.17 This regulatory pressure has led German automakers to reduce EV prices aggressively, which in turn has triggered a collapse in used car values, exposing leasing companies and consumers to considerable financial risks.17 This regulatory push, without corresponding market readiness, is directly impacting OEM profitability and creating an unsustainable financial balancing act.

Conversely, in the United States, early 2025 saw the federal government announce stricter rollbacks on fuel economy and emission standards that were previously set to phase in by 2030.18 This policy shift provides automakers with more flexibility in vehicle design and production, potentially encouraging the manufacture of larger, less fuel-efficient vehicles that have historically been more profitable, and may lead to a scaling back of EV investments.18

The rise of connected and autonomous vehicles introduces another layer of regulatory complexity. These technologies generate massive amounts of personal and geolocation data, necessitating strict privacy laws and global standards.19 In the US, 11 new comprehensive privacy laws are slated to take effect by 2026, creating a complex and potentially heavy compliance burden for companies operating across state lines.20 Cybersecurity threats and data privacy concerns are major challenges, raising risks to vehicle safety and privacy.19 The stark divergence in global regulatory approaches, exemplified by the EU's stringent emission targets with heavy financial penalties versus the US's rollback of fuel economy standards, creates a fragmented and costly compliance landscape for global automakers. This necessitates highly differentiated product and investment strategies across regions, impacting profitability unevenly. Furthermore, the burgeoning landscape of data privacy regulations, particularly for connected vehicles, adds another layer of significant compliance costs and legal risk, requiring substantial investment in cybersecurity and data management infrastructure.

III. Country-Specific Financial Analysis

The global automotive landscape is a mosaic of diverse national markets, each presenting unique financial dynamics shaped by local demand, government policies, and specific challenges. Understanding these country-specific nuances is critical for a comprehensive financial outlook.

China: Market Dominance Amidst Intense Competition

China remains the undisputed leader in global vehicle production, having manufactured over 30 million vehicles in 2023.21 The Chinese light vehicle market is projected to reach 26.8 million units in 2025, potentially accounting for 29% of global new car sales.1 A significant revenue driver is the robust sales of New Energy Vehicles (NEVs), which notably outsold Internal Combustion Engine (ICE) vehicles in the Passenger Vehicle sector in the second half of 2024.1 Government incentives, such as the extension of scrapping subsidy programs until the end of 2025 and sales tax exemptions for NEVs, continue to buoy sales and underpin revenue streams.1 China's extensive manufacturing capabilities and strong export focus also contribute substantially to its automotive revenue.2 Local OEMs like BYD are capturing significant market share, with several models consistently ranking among the top global EV sellers, demonstrating their competitive strength.7

The primary financial challenge for the Chinese automotive market is the intensifying and "brutal" price war.1 This hyper-competitive environment puts immense pressure on profit margins for both domestic and international automakers operating in the region. The aggressive pricing strategies mean that companies are lowering prices to gain or maintain market share, which, assuming stable costs, directly translates to lower revenue per unit and, consequently, reduced profit margins. Despite high sales volumes, the market continues to struggle with weak underlying demand and a sluggish broader economy, exacerbated by global uncertainty and a still-depressed property market.1 Carmakers are struggling to maintain profitability in the face of this price war, and this pressure could potentially spill over into increased price pressures in other global markets as well.9 Therefore, while high sales volumes might appear positive for top-line revenue, the severe erosion of profitability due to aggressive pricing poses a significant threat to the long-term financial health of companies operating in China, underscoring that volume alone does not guarantee financial success in such a hyper-competitive, price-sensitive environment.

United States: Growth Trajectory Under Policy Scrutiny

The US automotive market is projected to experience a slight increase in sales volume in 2025, with light vehicle sales anticipated to reach between 16.2 million (GlobalData) and 16.3 million units (Cox Automotive), potentially marking the best year for the market since 2019.3 The underlying strength of the US economy, despite political uncertainties, provides a foundational support for consumer spending.3 Revenue per unit is boosted by robust vehicle pricing, driven by the increasing integration of advanced technological content, the rising costs associated with electrification, and relatively lower inventory levels.3 Improving vehicle affordability in 2025, fueled by expanding credit availability and declining auto loan rates, is expected to further stimulate demand and support sales growth.3 Electrified vehicles, encompassing both EVs and hybrids, are predicted to account for approximately 25% of the total market, with pure EVs reaching a record 10% market share.3 Light trucks, including SUVs, continue to dominate sales in the US market, representing a strong and consistent revenue stream.3 Beyond traditional vehicle sales, emerging revenue streams include the rapidly growing autonomous car market, projected to reach $60.3 billion in 2025, and the connected car market, expected to hit $121 billion in 2025.3

The primary financial risk for the US automotive sector stems from potential policy shifts under a new administration, particularly the imposition of a 25% tariff on imports from Mexico and Canada.3 Such tariffs could transform US auto sales growth from a projected 1% increase to a 3% decline, with up to one million units of demand potentially at risk.1 Retaliatory measures from other nations could escalate this into a full-fledged global trade war, further disrupting the industry.1 The rollback of EV incentives earlier in the year also impacts market dynamics and investment decisions.11 High interest rates and inflation, while showing signs of easing, continue to contribute to a cautious outlook.11 While overall EV sales are expanding, some major EV players like Tesla and Rivian experienced year-over-year decreases in sales in early 2025, indicating an evolving and increasingly competitive landscape within the EV segment.3 Supply chain consolidation, particularly for critical components like batteries and semiconductors, also poses an ongoing challenge to production stability and cost management.2

The significant threat and actual implementation of US tariffs are not merely increasing import costs; they are acting as a powerful catalyst for a fundamental re-evaluation of automotive supply chains and manufacturing locations. This situation is compelling automakers to make substantial strategic investments in re-shoring production, such as General Motors' announced $4 billion investment to shift certain combustion-engine models from Mexico to US plants, and to pursue broader localization efforts.11 Similarly, Hyundai and Honda have redirected production to mitigate tariff impacts.11 While these efforts aim to build long-term resilience and mitigate the financial impact of tariffs, they represent significant short-term capital expenditure and operational disruption. This directly impacts immediate profitability and necessitates a substantial reallocation of investment capital, highlighting how external trade policy is driving costly, fundamental strategic shifts in the industry's manufacturing footprint.

Europe: Navigating Economic Headwinds and Regulatory Shifts

Europe's car market, which experienced sluggishness in 2024, is projected for only a modest recovery leading up to 2030, with sales stagnating at approximately 16-17 million units.1 Easing interest rates are proving beneficial for vehicle financing, and the introduction of more affordable vehicle options could provide some support for demand.1 European automakers are also making strategic investments in advanced battery technologies; for instance, BMW and Volkswagen are focusing on solid-state battery technology, aiming for small-scale production by 2025. Such innovations could provide a competitive edge and open future revenue streams.17 The potential ratification of the EU-Mercosur free trade agreement could further lower tariff barriers and create new export opportunities for German auto exports to South America.17

However, the European market remains subdued, grappling with broader concerns over international trade dynamics and the overall strength of the economy.1 High vehicle pricing persists, and while some affordability factors are emerging, they are not expected to drastically alter this high-price environment.1 The region is also contending with political uncertainties in key countries like Germany and France, alongside high levels of fiscal debt.1 A significant challenge comes from the growing competition posed by Chinese EV imports, which held a 7% share of the European new-car market in 2024 and are projected to increase to 10% in 2025.9 Despite this, the residual values of Chinese BEVs still lag behind those from established brands.9

A major source of financial strain is the European Union's stringent carbon emission regulations, which took effect on January 1, 2025. These new standards cap average emissions at 93.6 grams per kilometer.17 Automakers failing to meet these targets could face substantial fines of up to 15 billion euros, compelling them to ensure at least 20% of their total sales come from electric vehicles.17 Despite this regulatory pressure, EV adoption has been slower than anticipated, accounting for only 13% of the EU market in 2024, falling considerably short of expectations. This slowdown is attributed to high electricity costs, insufficient charging infrastructure, and weak consumer demand.17 This situation has forced German automakers to aggressively reduce EV prices to stimulate sales, which in turn has led to a collapse in used car values, exposing leasing companies and consumers to significant financial risks.17 This regulatory-induced financial strain is evident in the significant net profit declines reported by major German OEMs like BMW, Mercedes-Benz, and Volkswagen in Q3 2024, with reductions of 84%, 54%, and 64% respectively.17 The industry also faces challenges from supplier bankruptcies, mass layoffs, and a lag in battery technology.17 Furthermore, the threat of US tariffs poses a major concern for Germany's export-driven economy 1, and overall cost pressures remain a dominant concern.11 This situation illustrates how regulatory mandates, when not aligned with market readiness, can create a multi-faceted financial burden that distorts normal market dynamics and severely impacts profitability.

Japan: Export Contraction and Domestic Market Adjustments

Japan's automotive output experienced a significant plunge of 5.9% month-over-month in March 2025, marking the steepest decline since 2020, with major manufacturers like Toyota and Nissan reporting substantial drops in production.26 This sharp contraction is largely due to its high reliance on exports for revenue. The most severe financial blow has come from US tariffs, specifically a 25% duty on imported vehicles and parts under Trump’s 2025 policy, which slashed Japan’s auto exports by an estimated $17 billion in Q1 2025.26 This directly impacts the core revenue stream of a heavily export-dependent industry.

Further exacerbating the downturn are ongoing supply chain disruptions, such as a Toyota supplier explosion that halted the production of key models.26 There is also a strategic shift by companies like Honda and Mazda towards USMCA (United States-Mexico-Canada Agreement) production, impacting production volumes within Japan.26 Longer-term forecasts for Japanese production have been reduced due to these production transfers and project cancellations.27 The broader Japanese economy faces challenges from weak investment, subdued demand, elevated uncertainty, and a projected slowdown in GDP growth due to trade tensions.28

While facing these significant challenges, opportunities for revenue generation in Japan are primarily observed in the liquidation of domestic market overstock. Due to dwindling exports, dealers in Japan are experiencing an oversupply, leading to a 5% to 8% price decrease in the domestic market in Q1 2025.26 This creates opportunities for importers to acquire vehicles at lower prices, indirectly helping Japanese manufacturers move inventory, albeit at reduced per-unit revenue. Post-disruption purchasing and pre-model refresh discounts also contribute to sales by clearing existing stock.26 The industry is thus forced to re-orient towards domestic market liquidation, often at reduced prices, and strategically accelerate localized production in other regions like North America. This response incurs additional costs and impacts overall profitability and global market share, necessitating significant capital shifts to adapt to the new trade environment.

India: Robust Domestic Demand and Electrification Push

The Indian automobile industry, valued at ₹126.67 billion in 2025, is projected to experience robust growth, underpinned by a Compound Annual Growth Rate (CAGR) of 8.20% from 2019 to 2024, suggesting a continued upward trajectory through 2033.29 This growth is primarily driven by increasing disposable incomes, a burgeoning middle class, and proactive government initiatives promoting vehicle electrification and infrastructure development.29

Two-wheelers consistently dominate the Indian market in terms of sales volume, largely due to their affordability and utility, particularly in rural areas, and are expected to remain the largest contributor to overall market size.29 Passenger car sales are also surging, fueled by rising disposable incomes and improved infrastructure.29 The commercial vehicle segment anticipates steady growth, driven by ongoing infrastructure development and the expansion of e-commerce.29 Technological advancements, including connected car features and autonomous driving technologies, are gradually shaping the industry's future and opening new avenues for revenue.29 Robust Battery Electric Vehicle (BEV) production and a recovery in mid-size pickup exports further contribute to a positive production outlook.27

Despite this overall positive outlook, the industry faces challenges, including high input costs, fluctuating fuel prices, and stringent emission norms.29 Dependence on imports for some components and infrastructural limitations in certain regions also pose hurdles.29 While overall retail growth was a modest 5% year-on-year in May 2025, passenger vehicle retails saw a concerning decline of 3.1% year-on-year, with inventory levels climbing significantly above recommended norms.30 The commercial vehicle segment also experienced headwinds, declining 3.71% year-on-year.30 Factors such as constrained financing, subdued consumer sentiment, and geopolitical tensions in border states have led buyers to delay purchases.30

This dynamic reveals a complex and segmented market where revenue streams are strong in certain areas, such as two-wheelers and government-backed EV initiatives, but pressured in others. The overall positive industry value and CAGR are primarily driven by the strong performance in high-volume segments and government support. However, factors like constrained financing, subdued consumer sentiment, and geopolitical tensions are specifically impacting segments like passenger and commercial vehicles. This means that while the headline numbers for the Indian automotive industry might appear robust, a deeper financial analysis indicates that profitability and growth are not uniform across all segments. Companies must therefore adopt highly differentiated and agile strategies to allocate resources effectively and tailor their product offerings and financing solutions to maintain profitability across their diverse market landscape.

South Korea: Export Resilience Amidst Protectionist Threats

The automotive industry accounts for a considerable share of South Korea's exports, approximately 15% of the country's total exports as of August 2024.31 A notable driver of growth has been the robust export of fully assembled vehicles, particularly passenger cars, which constituted an impressive 97% of exports by 2023.31 Demand for non-sedans, such as SUVs and MPVs, and eco-friendly vehicles has surged, with exports of environmentally friendly passenger vehicles increasing by over 30% year-on-year.31 The South Korean government has demonstrated strong support for the industry, rolling out a comprehensive support package in April 2025. This package includes low-cost financing worth 15 trillion won to prevent liquidity issues among automakers, a 1-trillion-won fund for parts makers to secure bond issuance guarantees, a reduction in the special consumption tax on new car purchases to stimulate domestic demand, and an increase in EV purchase subsidies.31 Furthermore, continued investment in overseas production facilities, particularly in the US, aims to satisfy local demand and bolster national income through repatriated profits rather than solely export earnings.31 The used car market also represents a significant revenue stream, estimated at USD 24.10 billion in 2025.32

Despite these strengths, the industry faces a severe blow from US protectionist trade policies, specifically the imposition of a 25% tariff on imported automobiles and certain parts. This poses a significant threat to Korea's price competitiveness, especially given that the US accounts for roughly half of Korea's automobile exports.31 Korean automakers are also confronting intense international competition in the EV market, particularly from rapidly expanding Chinese manufacturers in key markets like the US and Europe.31 Supply chain vulnerabilities are a major concern due to heavy reliance on imports of essential minerals such as lithium, cobalt, and nickel; any export restrictions on these critical inputs could significantly inflate production costs.31 The domestic market is grappling with an "EV Chasm," a phase of slow adoption beyond early adopters, primarily due to inadequate charging infrastructure, excessive charging time, and consumer anxiety regarding driving range.31 Additionally, recent high-profile incidents involving battery fires domestically have eroded public trust in EV safety, potentially hindering domestic adoption and the development of a resilient home market necessary for broader export expansion.31 Declining used electric car prices also present a challenge to revenue generation within the overall used car industry.32

South Korea's automotive industry is thus engaged in a critical financial balancing act. Its strong export-driven revenue, particularly from fully assembled vehicles, is highly vulnerable to US protectionist tariffs, which directly threaten its price competitiveness in a key market. Simultaneously, the industry must cultivate a robust domestic EV market, which is currently struggling with slow adoption and eroded public trust due to safety concerns. This dual challenge, compounded by a heavy reliance on imported critical minerals for EV production, necessitates significant government intervention through comprehensive support packages. These measures aim to stabilize liquidity and support the EV transition, alongside strategic shifts towards diversified export markets and localized overseas production, all crucial for ensuring long-term financial stability and growth.

Mexico: Production Hub Facing Tariff Uncertainties

Mexico's automotive sector has demonstrated strong performance, recording its highest sales volume in eight years with 593,284 new light vehicles sold between January and May 2025, representing a 0.9% increase over the same period in 2024.33 The country significantly benefits from nearshoring advantages, which include automatic savings on labor, infrastructure, permits, and license fees, making it an attractive manufacturing base for automakers.34 The North American semiconductor industry is also experiencing growth, driven by increasing demand from the automotive sector, further bolstering Mexico's position as a production hub.34 The automotive software market in Mexico is expanding rapidly, projected to reach $2,394.7 million by 2030 from $1,121.9 million in 2024, with a 14% Compound Annual Growth Rate (CAGR) from 2025 to 2030, propelled by applications in ADAS (Advanced Driver-Assistance Systems) & safety and infotainment.35 Expanding financing options are also playing a key role in reshaping market dynamics and supporting sales.33

The primary financial challenge for Mexico's automotive industry is the significant uncertainty surrounding proposed US tariffs, particularly President Trump's campaign promise of "100% tariff(s) on every single car coming across the Mexican border".34 While tariffs do generate some revenue as a tax paid by American importers, they also make foreign cars more expensive, potentially causing a decline in demand and, consequently, a reduction in tariff revenue.34 Policy shifts under the new US administration could significantly impact vehicle demand, particularly concerning interest rates and tariffs.3 Mexico's car production experienced a 9.1% year-on-year fall in April 2025, marking the steepest annual decline since March 2024, although overall production for the first four months of 2025 still showed a modest increase of 0.94%.36 A struggle among US manufacturers to attract and retain talent could also indirectly affect Mexican production if US demand shifts or supply chain strategies are altered.34

Mexico currently presents a compelling nearshoring opportunity for automakers seeking cost reductions and supply chain resilience, further reinforced by a growing automotive software market. However, this financial advantage is heavily overshadowed by the substantial and uncertain threat of US tariffs. These tariffs could drastically increase vehicle costs, reduce sales volumes, and undermine profitability for manufacturers operating in Mexico. This creates a high-risk, high-reward investment environment, where strategic decisions are heavily dependent on the unpredictable political landscape and trade policy decisions, making Mexico a volatile investment destination despite its inherent advantages.

Table 1: Comparative Summary of Country-Specific Financial Challenges and Revenue Streams (2025)

Country

Key Revenue Streams (Summary)

Key Financial Challenges (Summary)

China

World's largest producer; robust NEV sales driven by incentives; strong manufacturing & export.

Intense, brutal price war; weak underlying demand; sluggish economy; global uncertainty.

United States

Strong sales growth; robust vehicle pricing from tech/electrification; growing EV/hybrid sales; dominant light truck segment; expanding connected/autonomous car markets.

Potential 25% tariffs on imports risking 1M unit sales; retaliatory trade war; EV incentive rollbacks; high interest rates/inflation; evolving EV competitive landscape.

Europe

Modest recovery; easing interest rates aiding financing; strategic investments in advanced battery tech; potential new export opportunities (EU-Mercosur).

Sluggish market; persistent high pricing; political uncertainties; growing Chinese EV competition; stringent EU emission fines; slow EV adoption & collapsing used EV values; profit declines; supply chain strain; US tariffs threat.

Japan

Domestic market overstock liquidation (discounts); post-disruption & pre-model refresh sales.

5.9% automotive output plunge; $17B export loss due to US tariffs; supply chain disruptions; shift to USMCA production; broader economic weakness.

India

Robust overall growth; increasing disposable incomes; burgeoning middle class; government EV/infrastructure push; dominant two-wheeler segment; surging passenger car sales; commercial vehicle growth.

High input costs; fluctuating fuel prices; stringent emission norms; import dependence; infrastructural limitations; segment-specific sales declines (passenger, commercial vehicles); constrained financing; subdued consumer sentiment.

South Korea

Strong export of assembled vehicles (passenger cars, non-sedans, eco-friendly vehicles); comprehensive government support package (financing, funds, tax cuts, subsidies); investment in overseas production; significant used car market.

25% US tariffs threatening price competitiveness; intense EV market competition (China); supply chain vulnerability (critical minerals); domestic "EV Chasm" (slow adoption, charging issues, range anxiety); eroded public trust in EVs (battery fires); declining used EV prices.

Mexico

Highest sales volume in 8 years; nearshoring advantages (lower labor, infrastructure costs); growing North American semiconductor demand; rapidly expanding automotive software market; expanding financing options.

Significant uncertainty from proposed US tariffs (potential 100%); risk of reduced demand/tariff revenue; production decline in April 2025; talent attraction/retention challenges in US impacting demand.

IV. Outlook and Strategic Implications

The global automotive industry in 2025 is defined by a complex and dynamic financial landscape. The overarching outlook points to a continued and intensified squeeze on traditional vehicle manufacturing profit margins. This pressure arises from a combination of fierce competition, particularly the brutal price war in China, escalating operational costs due to factors like tariffs and supply chain complexities, and the inherent capital-intensive nature of the industry's technological transition. Consequently, maintaining and growing financial health will critically depend on a strategic imperative for aggressive diversification of revenue streams beyond vehicle sales and a relentless focus on supply chain optimization and cost management. This is not merely about incremental improvements but a fundamental struggle for profitability, making diversification and cost control essential for survival and growth.

Consolidated Outlook on Key Financial Trends

  • Electrification Evolution: The industry will continue its trajectory towards electrification, but with a more pronounced strategic emphasis on Hybrid Electric Vehicles (HEVs) in the near term. This shift is driven by consumer affordability concerns, existing infrastructure limitations, and the immediate profitability challenges associated with Battery Electric Vehicles (BEVs).4 While BEV sales will continue to grow, the pace is expected to be incremental rather than explosive.37 The burgeoning used EV market will present new revenue streams for dealerships but also pose challenges for new EV pricing and OEM residual values due to increased supply and depreciation.8

  • Software-Defined Vehicles and New Revenue Models: The substantial growth of Artificial Intelligence (AI) software and connected car technologies will fundamentally reshape traditional revenue models. The industry is moving towards recurring, service-based income, often termed "servitization" or "XaaS" (Anything as a Service), rather than solely relying on transactional vehicle sales.6 This represents a significant opportunity for increased customer lifetime value and potentially higher profit margins by monetizing data-driven services and subscription offerings.

  • Persistent Supply Chain Volatility and Cost Pressures: Geopolitical tensions, notably the imposition of US tariffs, and the inherent complexities of electrification, such as specialized battery handling and costly localization efforts, will continue to exert significant upward pressure on operational costs.11 Raw material costs and the availability of semiconductors will remain critical concerns.2 This confluence of factors will likely sustain pressure on industry-level EBIT margins, which are already below pre-COVID levels.5

  • Divergent Regulatory Environments: Global automakers will continue to navigate a fragmented regulatory landscape. Contrasting environmental policies, such as the European Union's stringent emission targets versus the United States' rollbacks, and evolving data privacy laws, particularly for connected vehicles, will necessitate highly tailored product strategies and significant compliance investments across different regions.17 This divergence will lead to uneven profitability and increased operational complexity.

  • Shifting Consumer Preferences and Financing: Consumers will increasingly prioritize affordability, driving demand in the used car market and influencing the mix of ICE, HEV, and BEV sales.4 Improving credit availability and declining auto loan rates will support overall demand 3, but consumer sentiment will remain sensitive to broader economic and political uncertainties.1

  • Geopolitical Influence: Geopolitical tensions and protectionist trade policies will remain major disruptors, directly impacting production volumes, sales figures, and overall profitability across key markets.1

Strategic Considerations for Global Automakers and Stakeholders

Given the complex and volatile financial landscape of 2025, automakers face a critical imperative to fundamentally re-prioritize capital allocation and accelerate business model transformation. Financial success will increasingly hinge on their ability to judiciously balance substantial, long-term investments in future-oriented technologies and new, service-based revenue models with the immediate, pressing needs for robust supply chain resilience, aggressive cost management, and agile responses to unpredictable geopolitical trade policies. This requires a shift from traditional volume-driven growth strategies to more flexible, diversified, and value-added approaches.

  • Agile Capital Deployment: Companies must balance significant investments in future technologies (EVs, AI, ADAS) and new revenue models (servitization) with immediate needs for supply chain resilience and cost control. This involves careful prioritization of capital expenditures to maximize returns in a high-cost environment.

  • Supply Chain Localization and Diversification: Investing in localized production is crucial to mitigate the impact of tariffs and reduce reliance on single sources, particularly for critical components like batteries and semiconductors.2 Fostering long-term partnerships beyond transactional arrangements will enhance overall supply chain resilience.11

  • Technology Integration and Monetization: Accelerating the integration of AI and connected car technologies, focusing on clear digitalization strategies with measurable outcomes, is essential.11 Developing new business models to monetize data-driven services and subscription offerings will be key to diversifying income streams and increasing customer lifetime value.6

  • Adaptive Product Strategy: Tailoring product portfolios to specific regional regulatory environments and evolving consumer preferences is paramount. This includes adopting a flexible approach to BEV and HEV offerings, recognizing the current market dynamics.4 Focusing on affordability will be critical to capture broader market segments, especially in price-sensitive regions.25

  • Strengthening Aftermarket and Used Car Operations: Expanding Certified Pre-Owned (CPO) programs and enhancing fixed operations (service and parts) will help offset potential slowdowns in new car sales and capitalize on the higher margins often found in the used car market.9 This integrated approach ensures revenue capture across the vehicle lifecycle.

  • Proactive Regulatory Engagement: Engaging with regulators to shape standards that balance technological progress with risk management, especially concerning cybersecurity and data privacy, is vital.19 Prioritizing compliance measures will help avoid financial penalties and legal risks associated with the fragmented regulatory landscape.38

  • Market Diversification: Expanding into emerging markets and non-US markets can mitigate risks stemming from protectionist trade policies in established regions, ensuring a more diversified and resilient global revenue base.31

V. Works Cited

  1. "2025 Cox Automotive Market Insights and Outlook." Coxautoinc.com, Cox Automotive Inc., 2025. https://www.coxautoinc.com/market-insights/2025-cox-automotive-market-insights-and-outlook/. 14

  2. "Automotive Industry Trends: Global Automotive Outlook 2025." NOWPayments, 2025. https://nowpayments.io/blog/automotive-industry-trends. 16

  3. "Automotive trends 2025: 8 ways the industry is on track for." The Future of Commerce, 3 Jan. 2025. https://www.the-future-of-commerce.com/2025/01/03/automotive-trends-2025/. 6

  4. "Car Production by Country 2025." World Population Review, 2025. https://worldpopulationreview.com/country-rankings/car-production-by-country. 21

  5. "Create a financial report for the 2025 global automotive industry, containing a section about each country's industry. Make the report in a paragraph format with a deep analysis on revenue streams and challenges. Include an executive summary, section, include important financial trends and outlooks, cite your sources in MLA format at the end." Marketsandmarkets.com, MarketsandMarkets, 2025. https://www.marketsandmarkets.com/Market-Reports/global-automotive-industry-outlook-77960341.html. 2

  6. "Economic Watch: Germany's auto industry at crossroads in 2025." English.news.cn, Xinhua, 12 Jan. 2025. https://english.news.cn/20250112/857b3463ba134355b3861f411d8fbaf5/c.html. 17

  7. "Electric Vehicle Sales Poised For Growth As Prices Drop And Options Expand." EVXL.co, 27 June 2025. https://evxl.co/2025/06/27/electric-vehicle-sales-poised-for-growth/. 8

  8. "EV adoption edges upward as legacy automakers gain share." News.dealershipguy.com, 8 Apr. 2025. https://news.dealershipguy.com/p/ev-adoption-edges-upward-as-legacy-automakers-gain-share-2025-04-08. 37

  9. "EV Sales Volume Change by Brand: Q1 2025 versus Q1 2024." Cleanmpg.com, 2025. http://www.cleanmpg.com/community/index.php?threads/57431/. 23

  10. "Global Automotive Market Forecasts for 2025." Just-auto.com, 2025. https://www.just-auto.com/features/global-automotive-market-forecasts-for-2025/. 1

  11. "Global EV Sales — EVs Now 21% of World Auto Sales in 2025." CleanTechnica, 6 May 2025. https://cleantechnica.com/2025/05/06/global-ev-sales-evs-now-21-of-world-auto-sales-in-2025/. 7

  12. "Global light vehicle sales are projected to reach between 85.1 million and 91.6 million units." Autokunbo.com, 2025. https://autokunbo.com/global-auto-industry-market-size-2025-country-by-country-forecast/. 3

  13. "Indian Auto Retail Market Shows Mixed Performance in May 2025." Autocarpro.in, Autocar Professional, 6 June 2025. https://www.autocarpro.in/news/indian-auto-retail-market-shows-mixed-performance-in-may-2025-126860. 30

  14. "India Automobile Industry Strategic Insights: Analysis 2025 and Forecasts 2033." Datainsightsmarket.com, Data Insights Market, 6 Mar. 2025. https://www.datainsightsmarket.com/reports/india-automobile-industry-15945. 29

  15. "Japan's Manufacturing Decline: Automotive Buyer Opportunities in 2025." Wcshipping.com, WC Shipping, 6 May 2025. https://www.wcshipping.com/blog/japan-manufacturing-decline-auto-buying-opportunities-2025. 26

  16. "Korea's Automobile Exports: Sustaining Momentum Amid Emerging Challenges." Amro-asia.org, AMRO, 14 May 2025. https://amro-asia.org/koreas-automobile-exports-sustaining-momentum-amid-emerging-challenges. 31

  17. "Mexico Automotive Software Market Size & Outlook." Grandviewresearch.com, Grand View Research, 2025. https://www.grandviewresearch.com/horizon/outlook/automotive-software-market/mexico. 35

  18. "Mexico Car Production Contracts in April." Tradingeconomics.com, Trading Economics, 9 May 2025. https://tradingeconomics.com/mexico/car-production/news/458278. 36

  19. "Mexico Manufacturing Challenges + Opportunities for 2025." Ivemsa.com, IVEMSA, 25 Mar. 2025. https://www.ivemsa.com/mexico-manufacturing-challenges-opportunities-2025/. 34

  20. "Mexican Auto Sales Reach Eight-Year High in 2025." Mexicobusiness.news, Mexico Business News, 2025. https://mexicobusiness.news/automotive/news/mexican-auto-sales-reach-eight-year-high-2025. 33

  21. "Only Four EV Brands Are Profitable And Two Of Them Might Surprise You." Carscoops.com, 25 Mar. 2025. https://www.carscoops.com/2025/03/only-four-ev-brands-are-profitable-and-two-of-them-might-surprise-you/. 22

  22. "OECD Economic Outlook, Volume 2025 Issue 1: Japan." Oecd.org, OECD, 3 June 2025. https://www.oecd.org/en/publications/oecd-economic-outlook-volume-2025-issue-1_83363382-en/full-report/japan_cc84dbee.html. 28

  23. "Profitability of electric vehicles vs internal combustion engine vehicles 2025." Autovista24.autovistagroup.com, Autovista24, 25 June 2025. https://autovista24.autovistagroup.com/news/how-is-used-vehicle-retail-changing/. 9

  24. "South Korea Used Car Market Size & Share Analysis - Industry Research Report." Mordorintelligence.com, Mordor Intelligence, 31 Dec. 2024. https://www.mordorintelligence.com/industry-reports/south-korea-used-car-market. 32

  25. "Strategic Analysis of Global Connected Car Regulations 2025 - 5G and V2X Pioneering a Secure Revolution in Connected Car Technology - ResearchAndMarkets.com." Businesswire.com, Business Wire, 1 July 2025. https://www.businesswire.com/news/home/20250701476098/en/Strategic-Analysis-of-Global-Connected-Car-Regulations-2025-5G-and-V2X-Pioneering-a-Secure-Revolution-in-Connected-Car-Technology---ResearchAndMarkets.com. 19

  26. "Strategic Analysis of Global Automotive Supplier Study 2025." Lazard.com, Lazard, 2025. https://lazard.com/media/4k4gnvco/global-automotive-supplier-study-2025-summary.pdf. 5

  27. "The Automotive Finance Market Stabilizes; Data Indicates a Shift in Lending Strategies." Experian.com, Experian, 5 June 2025. https://www.experian.com/blogs/insights/auto-the-automotive-finance-market-stabilizes-data-indicates-a-shift-in-lending-strategies/. 15

  28. "The fast-moving mobility and sustainability trends transforming the automotive sector." Deloitte.com, Deloitte, 2025. https://www2.deloitte.com/us/en/insights/industry/retail-distribution/global-automotive-consumer-study.html. 39

  29. "The global auto industry is navigating significant changes due to ongoing US tariff activities, with expectations adjusted for a general stepdown in baseline tariffs across trading partners starting in 2026." Spglobal.com, S&P Global, 2025. https://www.spglobal.com/automotive-insights/en/blogs/2025-light-vehicle-production-forecast. 27

  30. "Understanding Changes to American Fuel Economy Regulations." Endurancewarranty.com, Endurance Warranty, 2025. https://www.endurancewarranty.com/learning-center/news/understanding-changes-to-american-fuel-economy-regulations/. 18

  31. "US Cybersecurity and Data Privacy Review and Outlook 2025." Gibsondunn.com, Gibson Dunn, 2025. https://www.gibsondunn.com/us-cybersecurity-and-data-privacy-review-and-outlook-2025/. 20

  32. "US Tariffs are shifting - will you react or anticipate?" Automotivelogistics.media, Automotive Logistics, 2025. https://www.automotivelogistics.media/supply-chain-planning/2025-forecast-resilience-tested-by-trade-volatility-ev-transitions-and-digital-fragmentation/337990. 11

  33. "Weak Dollar Impact: Top Benefiting Car Segments in 2025." Wcshipping.com, WC Shipping, 21 Apr. 2025. https://www.wcshipping.com/blog/weak-dollar-impact-car-segments-2025. 41

  34. "What to Expect from Car Subscription Models in 2025." Loopit.co, Loopit, 15 Jan. 2025. https://www.loopit.co/en-us/blog/what-to-expect-from-car-subscription-models-in-2025. 10

Works cited

  1. Global automotive market forecasts for 2025 - Just Auto, accessed July 1, 2025, https://www.just-auto.com/features/global-automotive-market-forecasts-for-2025/

  2. Global Automotive Outlook 2025: Market Size, Share, Trends ..., accessed July 1, 2025, https://www.marketsandmarkets.com/Market-Reports/global-automotive-industry-outlook-77960341.html

  3. Global Auto Industry Market Size 2025: Country-by-Country Forecast, accessed July 1, 2025, https://autokunbo.com/global-auto-industry-market-size-2025-country-by-country-forecast/

  4. Top Three Automotive and Mobility Trends in 2025 - Euromonitor International, accessed July 1, 2025, https://www.euromonitor.com/article/top-three-automotive-and-mobility-trends-in-2025

  5. Global Automotive Supplier Study 2025 - Lazard, accessed July 1, 2025, https://lazard.com/media/4k4gnvco/global-automotive-supplier-study-2025-summary.pdf

  6. Automotive trends 2025: 9 ways the industry is on track for growth, accessed July 1, 2025, https://www.the-future-of-commerce.com/2025/01/03/automotive-trends-2025/

  7. Global EV Sales — EVs Now 21% of World Auto Sales in 2025 - CleanTechnica, accessed July 1, 2025, https://cleantechnica.com/2025/05/06/global-ev-sales-evs-now-21-of-world-auto-sales-in-2025/

  8. Electric Vehicle Sales Poised For Growth As Prices Drop And Options Expand, accessed July 1, 2025, https://evxl.co/2025/06/27/electric-vehicle-sales-poised-for-growth/

  9. How is used-vehicle retail changing? - Autovista24, accessed July 1, 2025, https://autovista24.autovistagroup.com/news/how-is-used-vehicle-retail-changing/

  10. What to Expect from Car Subscription Models in 2025 | Loopit.co, accessed July 1, 2025, https://www.loopit.co/en-us/blog/what-to-expect-from-car-subscription-models-in-2025

  11. Automotive supply chains in flux: 2025 outlook and trends ..., accessed July 1, 2025, https://www.automotivelogistics.media/supply-chain-planning/2025-forecast-resilience-tested-by-trade-volatility-ev-transitions-and-digital-fragmentation/337990

  12. Why 2025 May Be The Auto Industry's Most 'Consequential Year' Yet - InsideEVs, accessed July 1, 2025, https://insideevs.com/news/756537/tariffs-consequences-cm-brightdrop-waymo/

  13. Understanding the impact of automotive tariffs on the auto industry in 2025 - Assurant, accessed July 1, 2025, https://www.assurant.com/news-insight/insights/automotive-industry/article/impact-of-automotive-tariffs-in-2025

  14. 2025 Cox Automotive Market Insights and Outlook, accessed July 1, 2025, https://www.coxautoinc.com/market-insights/2025-cox-automotive-market-insights-and-outlook/

  15. The Automotive Finance Market Stabilizes; Data Indicates a Shift in Lending Strategies, accessed July 1, 2025, https://www.experian.com/blogs/insights/auto-the-automotive-finance-market-stabilizes-data-indicates-a-shift-in-lending-strategies/

  16. Automotive Industry Trends: Global Automotive Outlook 2025 - NOWPayments, accessed July 1, 2025, https://nowpayments.io/blog/automotive-industry-trends

  17. Economic Watch: Germany's auto industry at crossroads in 2025 ..., accessed July 1, 2025, https://english.news.cn/20250112/857b3463ba134355b3861f411d8fbaf5/c.html

  18. Understanding U.S. Fuel Economy Regulations In 2025 | Endurance Warranty, accessed July 1, 2025, https://www.endurancewarranty.com/learning-center/news/understanding-changes-to-american-fuel-economy-regulations/

  19. Strategic Analysis of Global Connected Car Regulations 2025 | 5G and V2X Pioneering a Secure Revolution in Connected Car Technology - ResearchAndMarkets.com - Business Wire, accessed July 1, 2025, https://www.businesswire.com/news/home/20250701476098/en/Strategic-Analysis-of-Global-Connected-Car-Regulations-2025-5G-and-V2X-Pioneering-a-Secure-Revolution-in-Connected-Car-Technology---ResearchAndMarkets.com

  20. U.S. Cybersecurity and Data Privacy Review and Outlook – 2025 - Gibson Dunn, accessed July 1, 2025, https://www.gibsondunn.com/us-cybersecurity-and-data-privacy-review-and-outlook-2025/

  21. Car Production by Country 2025 - World Population Review, accessed July 1, 2025, https://worldpopulationreview.com/country-rankings/car-production-by-country

  22. Only Four EV Brands Are Profitable And Two of Them Might Surprise You | Carscoops, accessed July 1, 2025, https://www.carscoops.com/2025/03/only-four-ev-brands-are-profitable-and-two-of-them-might-surprise-you/

  23. US Q1 2025 Automobile Sales: 3.91 million Vehicles Sold, up 5.7% - CleanMPG, accessed July 1, 2025, http://www.cleanmpg.com/community/index.php?threads/57431/

  24. U.S. Electric Vehicle Sales Increase More Than 10% Year Over Year in Q1: GM Drives EV Growth While Tesla Declines - Cox Automotive Inc., accessed July 1, 2025, https://www.coxautoinc.com/market-insights/q1-2025-ev-sales/

  25. Germany Automotive Market Report- Q1 2025 - ReportLinker, accessed July 1, 2025, https://www.reportlinker.com/dlp/de860d314363f84b5ae3bbece6cd1a80

  26. Japan's Manufacturing Decline: Automotive Buyer Opportunities in ..., accessed July 1, 2025, https://www.wcshipping.com/blog/japan-manufacturing-decline-auto-buying-opportunities-2025

  27. June 2025 Light Vehicle Production Forecast - S&P Global, accessed July 1, 2025, https://www.spglobal.com/automotive-insights/en/blogs/2025-light-vehicle-production-forecast

  28. OECD Economic Outlook, Volume 2025 Issue 1: Japan, accessed July 1, 2025, https://www.oecd.org/en/publications/oecd-economic-outlook-volume-2025-issue-1_83363382-en/full-report/japan_cc84dbee.html

  29. India Automobile Industry Strategic Insights: Analysis 2025 and ..., accessed July 1, 2025, https://www.datainsightsmarket.com/reports/india-automobile-industry-15945

  30. Indian Auto Retail Market Shows Mixed Performance in May 2025 | Autocar Professional, accessed July 1, 2025, https://www.autocarpro.in/news/indian-auto-retail-market-shows-mixed-performance-in-may-2025-126860

  31. Korea's Automobile Exports: Sustaining Momentum Amid Emerging ..., accessed July 1, 2025, https://amro-asia.org/koreas-automobile-exports-sustaining-momentum-amid-emerging-challenges

  32. South Korea Used Car Market Size & Share Analysis - Industry Research Report, accessed July 1, 2025, https://www.mordorintelligence.com/industry-reports/south-korea-used-car-market

  33. Mexican Auto Sales Reach Eight-Year High in 2025 - Mexico Business News, accessed July 1, 2025, https://mexicobusiness.news/automotive/news/mexican-auto-sales-reach-eight-year-high-2025

  34. Mexico Manufacturing Challenges and Opportunities for 2025 - ivemsa, accessed July 1, 2025, https://www.ivemsa.com/mexico-manufacturing-challenges-opportunities-2025/

  35. Mexico Automotive Software Market Size & Outlook, 2030 - Grand View Research, accessed July 1, 2025, https://www.grandviewresearch.com/horizon/outlook/automotive-software-market/mexico

  36. Mexico Car Production Contracts in April - Trading Economics, accessed July 1, 2025, https://tradingeconomics.com/mexico/car-production/news/458278

  37. EV adoption edges upward as legacy automakers gain share - Car Dealership Guy News, accessed July 1, 2025, https://news.dealershipguy.com/p/ev-adoption-edges-upward-as-legacy-automakers-gain-share-2025-04-08

  38. What's New in Compliance for 2025 - Dealertrack, accessed July 1, 2025, https://us.dealertrack.com/resources/whats-new-in-compliance-for-2025/

  39. Automotive Industry and Future of Mobility Trends | Deloitte US, accessed July 1, 2025, https://www.deloitte.com/us/en/services/audit-assurance/blogs/accounting-finance/future-of-mobility-trends-insights-from-global-consumer-study.html

  40. 2025 Global Automotive Consumer Study | Deloitte Insights, accessed July 1, 2025, https://www2.deloitte.com/us/en/insights/industry/retail-distribution/global-automotive-consumer-study.html

  41. Weak Dollar Impact: Top Benefiting Car Segments in 2025 - West Coast Shipping, accessed July 1, 2025, https://www.wcshipping.com/blog/weak-dollar-impact-car-segments-2025