Automotive Industry Insights–Summer 2025

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Globally, 2024 marked a year of slow growth for the automotive industry, as volumes only grew 1.7% to 88.1 million units. 2025 is expected to be another year of sluggish growth, with only a 1.6% forecasted increase in sales volumes. Sales are expected to be negatively impacted by weaker customer demand, mixed economic conditions and political risk marked by an uncertain tariff environment.¹

In 2024, U.S. auto sales grew 1.9% year over year (YoY), with strong sales in the last three months of the year.² For 2025, sales are forecast to drop to 15.4 million units as demand softens and tariff impacts increase the cost of vehicles.³ Electric vehicles (EVs) continue to gain market share in the U.S. but grew only 10% in 2024 compared to 40% in 2023. Battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) now account for 10% of new car sales.⁴