ACEA: Global and European Automotive Industry in the First Half of 2025
Part 1 – Passenger Cars (M1)
Thanks to the cooperation between the Serbian Association of Vehicle and Parts Importers and the European Automobile Manufacturers’ Association (ACEA), we present an analysis of the economic and market performance of the automotive industry worldwide and in the EU during the first half of 2025. The report highlights the current state of the industry and indicates its likely direction in the coming period.
In this first part, we focus on passenger cars (M1 category).
Global
Worldwide registrations of new passenger cars increased by 5% to 37.4 million units, driven by a 12% surge in China. North America grew by 2.5%, while Europe saw a 2.4% decline, with the EU market specifically down by 1.9%.
By June 30, 2025, battery-electric vehicles accounted for 15.6% of the EU market, up from 12.5% in H1 2024. Hybrid vehicle registrations continued to grow, reaching 34.8%. Meanwhile, the combined market share of petrol and diesel vehicles dropped to 37.8%, down from 48.2% in the same period of 2024.
EFTA countries (Switzerland, Norway, Iceland, Liechtenstein) led the way with a 49% share of electric cars in H1 2025. Poland and Italy topped hybrid adoption with 48.6% and 44.2%, respectively. The Netherlands reached a 35% EV share, followed by Belgium with 32.8%. Austria and Germany posted almost identical market shares of hybrids (28.1% and 28.5%) and EVs (22% and 17.7%). France recorded 44.7% of new registrations as hybrids, with EVs at 17.6%.
An interesting angle is the origin of cars purchased in the EU:Asia
China posted a 12% rise in registrations, reaching 11 million units. Japan grew by 10.7% to nearly 2 million units after overcoming 2024 supply disruptions. South Korea also contributed with a 5% increase, while registrations in India remained flat.
North and South America
North America recorded a 2.5% rise in new car registrations, with the US growing by 2.1% in H1 2025. South America stood out as the fastest-growing region, up 12.7%, driven partly by Brazil’s 3.3% rise, lifting total registrations to over 1.5 million units. Argentina (+86.4%) and Chile (+16.1%) also showed strong gains.
Global
Global passenger car production rose by 3.5% in H1 2025, reaching 37.7 million units. Asia led this growth, accounting for 60.1% of global production, while the EU represented 15.9%.
China’s output surged by 12.3% to nearly 13 million units, driven by government scrappage subsidies, easier car loans, recovering domestic demand, and stronger exports. India (+5.1%) benefited from new model launches, lower interest rates, and higher discounts. Japan (+5.6%) prioritized securing export volumes to offset US tariffs. South Korea (-1.2%) and Thailand (-1.2%) lagged due to sluggish demand and trade uncertainties.
Europe’s production fell by 2.6% to 7.4 million units, with the EU specifically down 2.8%, reflecting stricter CO2 targets, higher costs, and a slow recovery in key markets.
North America’s output fell 4.6% to 5.7 million units, including a 6.1% decline in the US, affected by high prices, inventory adjustments, tighter credit, and the looming expiry of EV tax credits.
South America grew by 6.3% to just over 1 million units, led by Brazil (+5.7%) thanks to fleet renewal, tax incentives for efficient cars, and the start of local assembly by Chinese manufacturers.
The Middle East and Africa saw production decline by 3.5% to 0.89 million units. Iran fell 6.5% due to weak demand and energy supply disruptions, while Morocco posted modest growth (+1.3%) supported by new investments and expanding export capacity.
European Union (EU)
Passenger car production in the EU declined by 2.8% to just under 6 million units in H1 2025, due to weaker external demand and cost pressures.
Germany, the EU’s largest producer (35.2% of EU output), grew production by 4.4%, exceeding 2.1 million units.
France also saw strong growth (+11.2%), while Slovakia expanded by 8.5%.
Italy posted the sharpest drop (-33.4%), followed by Belgium (-16.5%), Spain (-12%), and Sweden (-10.5%). Czechia, Hungary, and Romania each fell between 5–7%.
Production remained highly concentrated: Germany, Spain, and Czechia together accounted for 63% of EU passenger car production.
Over one-third of EU-produced passenger cars were sold outside the EU, underlining the industry’s export orientation. The export share even rose from 33.6% in H1 2024 to 34.8% in H1 2025, despite global challenges.
The UK remained the top non-EU market (651,104 units), followed by the US (381,366) and Turkey (237,651). Sales in China continued to decline, down to 116,084 units, reflecting growing domestic competition. Sales in Japan (83,661) and EFTA countries (129,815) were relatively stable. Other destinations, however, declined significantly, with combined sales dropping to 505,497 units.
Overall, the data confirm the importance of diversified export markets. Although growth in third countries is uneven, the EU’s ability to export over one-third of its production underscores both resilience and capacity in volatile global conditions.
Key Figures – Passenger Car Production, H1 2025 (selected markets)
The next publication will cover the same analysis for light commercial vehicles (N1 category).
Source: ACEA
Photo: AI
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