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PwC Autofacts®
Market Update
Automotive industry outlook
August 2025
Market Update
PwC Autofacts®
Table of
contents
1
Executive
summary
2
Industry
overview
3
Analyst
insights
4
Global
and regional markets
analysis
5
Appendix:
Scenarios and
assumptions,
glossary
생산
판매
Market Update
PwC Autofacts®3
Executive summary
*EU27+UK+EFTA
1
Regional Analysis Sales & Production
Market Update
PwC Autofacts®
세계거시경제
•ECB는 관세 불확실성이 경제에 미칠
영향이 직면한 가운데 금리 동결
•소비자 신뢰 지수(CCI)는 전월 대비
개선되었으나, 조사한 전 지역에서
여전히 부정적인 견해를 보임
•지정학적 이슈, 관세 이슈에도
불구하고 2025년6월 글로벌
승용차 판매량은 전년 동기 대비
2% 상승하여 0% 부근에서 등락
중
-유럽 5개국: 전년 대비 6% 감소
-중국: 올해 상반기 수출 10% 증가
-미국: 전년 동월 대비 4% 감소하며
3개월 연속된 전년 대비 성장에 제동
•유럽의 승용차 생산량은 14개월
연속 전년 동기 대비 하락
•EV는 올해 상반기 동안 전년 대비
두자릿수 성장률
-PwC의 기본 시나리오는 2025년
3분기에 전년 대비 1%의 완만한
증가를 전망
원자재
•기존 가격대 내에서 소폭 변동 전망
-리튬: 전월 대비 3% 감소
-코발트: 전월 대비 1% 감소
-구리: 전월 대비 4% 증가
인도 승용차
시장
•인도는 2022년 일본을 제치고 판매량
세계 3위에 오름
•2024~2029년 글로벌 CAGR은1%
성장하나, 인도는 4% 성장 전망
-2024년 인도 시장 점유율(판매량):
스즈키(38%), 현대∙기아(20%),
타타(13%) 순
Market Update
PwC Autofacts®
Industry overview
Market Update
PwC Autofacts® *EU27+UK+EFTA
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-101k -1%
+286k +4%
+1.32m +14%
Full year sales 2024 vs. 2025 YTD sales delta to 2024
Absolute Relative
2024 PwC Base 2025
5
Automotive dashboard
The momentum of the two largest markets, China and USA is being dampened by
Europe* and other regions outside these key markets in the first half of 2025
China
USA
Europe*
Prices Q2 2025 vs. Q3 2025
forecast
Lithium +3%
Cobalt
+2%
Nickel
+1%
Copper
+1%
2
•Global passenger car sales have exhibited a zigzag growth pattern, increasing by 2% YoY in June, thereby sustaining a lead over H1 of last year.
•In June, Europe* posted its 4th YoY decline this year with -6% leading to a 101,000 unit shortfall in H1 2025 over H1 2024
•Both China and USA sales ended the first half of 2025 on a positive note with +14% and +4% YoY, respectively
Market Update
PwC Autofacts®6
Hot topics
Overview of latest developing stories in the automotive industry
Source: Automobilwoche, Handelsblatt, Reuters, Bloomberg, Npr
In Q2 earnings, GM and Stellantis
revealed that tariffs directly
impacted their margins.
Currently, OEMs absorb most of
the tariffs as a hit to their profits,
rather than passing them to the
customers.
2
Handelsblatt
1
Automobilwoche
3
Reuters
4
Bloomberg
Trump and EU Strike
Trade Deal – Modest
boost for automotive
industry
New tax rules in China
hit luxury segment the
most and lower the
threshold by €48k
US tells OEMs they no
longer face fines for
missing fuel economy
targets
EU looks to force car-
rental firms to buy only
EVs from 2030
Carmakers are feeling
tariff pain: Numerous
OEMs report hit to
profits
Europe and the USA have
reached a compromise in their
trade dispute. The original 25%
tariff, will be reduced to 15%, still
marking a 12,5% increase. VW
anticipates this change to cost it
€1.3 billion.
5
NPR
The EU is considering to ban car-
rental firms and large companies
from purchasing ICEs for their
fleets starting in 2030. This could
impact 60% of new car sales. The
decision will be made later in the
summer.
The NHTSA is currently
reviewing its fuel economy
regulations. In the past, non-
compliant OEMs paid millions in
penalties, which often went to
OEMs that were either over-
compliant or focused on BEVs.
China has imposed a 10% luxury
tax on vehicles over €108,000
and now all powertrains. This
could exacerbate challenges for
foreign OEMs in the Chinese
market as Chinese models are
generally priced below this level.
2
Market Update
PwC Autofacts®
1,20
1,15
1,10
1,05
1,00
140
160
180
2
4
6
10,0
7,5
5,0
2,5
0,0
100
95
90
85
802023 Apr Jul Oct 2024 Apr Jul Oct 2025 Apr
China Eurozone USA
China
0
2023 Apr Jul Oct 2024 Apr Jul Oct
Eurozone USA
2025 Apr Jul
China Eurozone USA
JPY (lhs)
1202023 Apr Jul Oct 2024 Apr Jul Oct 2025
USD (rhs)
Apr Jul
As of the end of July compared to last month, the Japanese yen weakened
against the euro. While the US dollar slightly strengthened against the euro
month-on-month, the overall trend thus far in 2025 showcased a weak US dollar.
7
Economic indicators
The U.S. is forging new trade deals with major economies, while upcoming remarks
are expected to clarify the economic impact of tariffs
Source: PwC Autofacts analysis, ECB, Fed, BEA, PBC, OECD
Exchange rates
(per EUR) Real GDP change
(in % over previous year)
2023 Apr Jul Oct 2024 Apr Jul Oct 2025 Apr
In Q2 2025, China’s real GDP grew by 5.2% over the same quarter last year.
This marks the third consecutive quarter where China maintained YoY growth
above 5%.
Central bank policy rates
(in %)
Following the easing cycle of interest rate cuts, the ECB has kept interest rates
on hold while confronted with the uncertain effects of tariffs on the economy.
Meanwhile, the Fed’s interest rate decision is on the horizon, as of end of July.
In Q2 2025, marginal month-on-month improvements in consumer confidence
can be identified, however, consumer sentiment in all analysed regions remains
pessimistic.
Consumer confidence indicators
(index)
2
Market Update
PwC Autofacts®
0
20
40
60 40
35
30
25
20
10
15
20
25
Jul Oct 2024 Apr Jul Oct 2025 Apr Jul Oct 2026 Apr
11
10
9
8
7Jul Oct 2024 Apr Jul Oct 2025 Apr Jul Oct 2026 Apr
Jul Oct 2024 Apr Jul Oct 2025 Apr Jul Oct 2026 Apr
Despite the graph’s indication of stable price trends since mid-2024, lithium price
fell by an additional 3% in June compared to May. This drop brought prices to
$8,250/mt, marking a new low since the supply chain disruption of 2023
8
BEV commodity prices
Despite potential trade wars affecting rare-earth exports, battery commodities are
stable, with cobalt as an outlier due to DR Congo's export bans
*London Metal Exchange
Source: PwC Autofacts analysis, Bloomberg
Lithium
(LME*, in ’000 USD/metric ton) Cobalt
(LME*, in ’000 USD/metric ton)
Jul Oct 2024 Apr Jul Oct 2025 Apr Jul Oct 2026 Apr
Cobalt prices declined marginally by 1% in June over May to $32,900/mt,
remaining at a high level. Q3 2025 forecasts, expect a price increase to
$34,500/mt caused by the discussions of an export ban from DR Congo.
Nickel
(LME*, in ’000 USD/metric ton)
Nickel prices did not change in June, remaining at a price around the $15,500/mt
mark. Forecasts expect a slow increase in prices towards $16,000/mt until the
end of Q1 2026.
Prices for copper increased for the second consecutive month by another 4%
compared to May reaching $9,900/mt. Forecasts expect a slight fall in prices to
$9,500/mt until the end of 2025.
Copper
(LME*, in ’000 USD/metric ton)
2024 average
2
Market Update
PwC Autofacts®
Analyst insights
Market Update
PwC Autofacts®10
Critical raw materials
Nine raw materials including 17 rare-earth elements (REE) are claimed as critical
by all three major regions of which China is the largest producer of three
*With production volumes >100,000 metric tons in 2024
Source: PwC Autofacts analysis, European Commission, US Department of Energy, International Energy Agency, US Geological Survey
3
Claimed critical by
all three regions
By USA
(defined in 2020)
By China
(defined in 2016)
By EU
(defined in 2023)
Au
Gold
Fe
Iron
Mo
Molybdenum
K
Potash U
Uranium
C
Coal
Copper
P
Phosphorus
Co
Sn
Tin Cr
ChromiumZr
Zirconium
Al
Aluminum/
Bauxite
Sb
Antimony
Co
Cobalt
CaF2
C
Graphite
Li
Lithium
Fluorspar
Ni
Nickel
REE
Rare earth
elements
W
Tungsten
BO3
Borate
B
Boron
Si O
3 8
Feldspar
He
Helium
P O
2 5
Phosphate
rock
Si
Silicon
Sr
Strontium
Caesium
Ir
Iridium
Pd
Palladium
Rh
Rhodium
Rubidium
Cs
Ru
Ruthenium
Te
Tellurium
Rb
Y
Yttrium
Zn
Zinc
As
Arsenic
BaSO4
Baryte
Be
Beryllium
Bi
Bismuth
Ga
Gallium Ge
Germanium
Hf
Hafnium
In
Indium
Mg
Magnesium
Mn
Manganese
Nb
Niobium
Pt
Platinum
Sc
Scandium
Ta
Tantalum
Ti
Titanium
V
Vanadium
Rare-earth
elements
Largest producers of critical minerals claimed by all
three regions*
China USA Myanmar
69% 12% 8%
Aluminum
China
60%
India
6%
Russia
5%
Cobalt
DR Congo
76%
Indonesia Russia
Graphite
China
79% 6%
10% 3%
Madagascar Mozambique
5%
Lithium
Australia
37%
Chile
20%
China
17%
Nickel
Indonesia
59%
Philippines
9%
Russia
6%
Market Update
PwC Autofacts®11
Rare earth elements (REE) sourcing
Almost half (44%) of the global rare-earth element reserves are located in countries
that account for only 1% of total mine production
*Not exhaustive
Source: PwC Autofacts analysis, Eurostat, US Geological Survey
Rare earth reserve and production in 2024*
Producing countries with own reserves
Producing countries with little to no reserves
Countries with large reserves but little to no production
Primarily processing, but not producing countries
2,600 t
100 t 5,500 t
3,700 t 300 t
South Africa
Reserve: 860,000 t
Production: -
Brazil
Reserve: 21,000,000 t
Production: 20 t
Canada
Reserve: 830,000 t
Production: -
Greenland
Reserve: 1,500,000 t
Production: -
Tanzania
Reserve: 890,000 t
Production: -
India
Reserve: 6,900,000 t
Production: 2,100 t
Vietnam
Reserve: 3,500,000 t
Production: 300 t
Russia
Reserve: 3,800,000 t
Production: 2,500 t
Myanmar
Reserve: -
Production: 31,000 t
Thailand
Reserve: 4,500 t
Production: 13,000 t
Nigeria
Reserve: -
Production: 13,000 t
Australia
Reserve: 5,700,000 t
Production: 13,000 t
China
Reserve: 44,000,000 t
Production: 270,000 t
USA
Reserve: 1,900,000 t
Production: 45,000 t Total REE imports
12,900 t
100 t
3
Market Update
PwC Autofacts®12
Global EV sales in H1 2025
With a 38% YoY increase, BEV sales hit their highest-ever market share of 17.3%
during the first half of the year across the 40 analysed markets
*Analysed markets include Australia, Austria, Belgium, Brazil, China, Denmark, Finland, France, Germany, India, Indonesia, Italy, Japan, Netherlands, Norway, Portugal,
Rest of EU27+UK+EFTA, South Korea, Spain, Sweden, Switzerland, Turkey, UK, USA; **Based on S&P Global Mobility LV Powertrain Production June 2025 release
50% 17% 30%
30% 41% 9% 20%
78% 12% 7%
18% 10% 29% 44%
15% 8% 38% 39%
17% 9% 16% 58%
H1 2025
See the latest
Electric Vehicle
Sales Review
Q2 2025 for
more details
Germany Sales
EU Top 5 Sales
Global Sales* China Sales
USA Sales
EU Top 5 Production**
BEV sales YoY growth
H1 2025 vs. H1 2024
Selected markets
<10%
BEV market
share in H1
2025
+42% YoY
Global average
+169%
+132%
+47%
+47%
2%
>10%
BEV market
share in H1
2025
+84%
+46%
+28%
+12%
BEV PHEV (incl. REEV) HEV (incl. FHEV, MHEV and Series) ICE
According to the S&P Global
Mobility LV Sales Forecast (Jun
2025 release), the 40 analysed
markets made up 83% of
global sales in H1 2025 across
all powertrains.
3
4%
Market Update
PwC Autofacts®13
Top-selling BEVs in key markets
Domestic BEV brands are increasingly dominating local sales charts, with Tesla
being the sole foreign brand to rank in Europe and China
Top-selling BEVs in H1 2025
(ranking change vs. Q1 2025)
*Ranking change affected by missing France Q1 2025 data
Source: PwC Autofacts® analysis, KBA, AAA Data, UNRAE, DGT, CPCA, KBB
Europe
Top 4*
Model
Sales H1 2025
Renault
5
23,404
🡩 9
Tesla
Model Y
21,302
🡩 3
VW
ID.3
19.811
🡩 1
VW
ID.4, ID.5
19,231
🡫 2
VW
ID.7
18,635
🡫 4
Citroen
e-C3
15,967
New
Skoda
Enyaq
15,685
🡫 4
Cupra
Born
13,401
🡫 1
BMW
iX1
13,378
New
Skoda
Elroq
12,771
New
USA
Model Sales H1 2025
Tesla Model Y 150,171
→
0
Tesla Model 3 101,323
→
0
Chevrolet Equinox 27,749
🡩
1
Ford Mustang Mach-E 21,785
🡫
1
Hyundai IONIQ 5 19,092
🡩
1
Honda Prologue 16,317
🡫
1
Ford F-150 Lightning 13,029
🡩
1
BMW i4 12,849
🡩
1
Chevrolet Blazer 12,736
New
Nissan Ariya 11,619
New
China
Model
Sales H1 2025
Geely
Geome Xingyuan 204,940 → 0
BYD
Seagull 174,912 🡩 2
Tesla
Model Y 171,491 → 0
Wuling
Hongguang Mini EV 171,064 🡫 2
Xiaomi
SU7 155,692 → 0
Tesla
Model 3 91,919 → 0
Geely
Panda 91,249 🡩 1
Xpeng
Mona M03 86,351 🡫 1
Wuling
Bingo 78,262 🡩 1
BYD
Yuan Plus 77,548 🡫 1
3
1
2
3
4
5
6
7
8
9
10
Market Update
PwC Autofacts®14
H1 2025 top 10 models in China
Seven models out of the top 10 ranking offer a BEV version
Model Starting
price* Segment Powertrain
type(s) H1 ’25
sales H1 ’25
vs. H1 ’24
Geely Geome Xingyuan €8,235 B 204,940 N/A
BYD Seagull €8,355 A 174,912 +4%
Tesla Model Y €31,541 D 171,491 -17%
Wuling
Hongguang Mini
EV €3,926 A 171,064 +105%
BYD Qin Plus €9,552 D 163,603 -32%
Xiaomi SU7 €25,843 E 155,692 N/A
Geely Xingyue L €17,680 D 146,223 +61%
BYD Song Plus €16,255 D 137,324 -23%
Volkswagen Lavida €9,575 C 136,962 -0.4%
Nissan Sylphy €9,564 C 136,344 -16%
ICE HEV
*Currency exchange rate as of 15.07.2025: 1 CNY = 0.1197 EUR
Source: PwC Autofacts analysis, CPCA
PHEV BEV
Key insights
•BEVs dominated the Chinese
market in H1 2025, only three out of
the top 10 models do not offer a BEV
version
•The Geely Geome Xingyuan
surpasses the runner-up by a
considerable margin, as a result of
advantages such as the price, features
and its larger size
•YoY performance in H1 2025
varied across the top 10 models,
only three models achieved comparable
growth over H1 2024
3
1
2
3
4
5
6
7
8
9
10
Market Update
PwC Autofacts®
11
12
13
14
15
16
17
18
19
20
15
H1 2025 top 11-20 models in China
ICEs and HEVs made up more than half of the models ranked 11-20
Model Starting
price* Segment Powertrain
type(s) H1 ’25
sales H1 ’25
vs. H1 ’24
BYD Qin L €11,946 D 134,950 N/A
Volkswagen Sagitar €15,310 C 119,317 +8%
Volkswagen Passat €19,691 D 115,162 +12%
Changan CS75 Plus €13,634 D 100,188 -6%
BYD Song Pro €12,305 D 100,140 -17%
Toyota Camry €20,564 D 98,125 +62%
Volkswagen Magotan €20,936 D 97,418 +28%
Toyota RAV4 Rongfang €20,325 C 97,159 +23%
Li Auto L6 €29,901 E 96,354 N/A
BYD Seal 06 €11,946 D 95,812 N/A
ICE HEV
*Currency exchange rate as of 15.07.2025: 1 CNY = 0.1197 EUR
Source: PwC Autofacts analysis, CPCA
PHEV BEV
Key insights
•Compared to the top 10 list with several
models under €10,000, the models in
ranks 11-20 are all above the
€10,000 threshold
•ICE/HEV models make up more
than half of the list, which are
primarily the respective JV models
from Volkswagen and Toyota
•The majority of the ICE/HEV
models showcased YoY growth in H1
2025 over H1 2024
3
Market Update
PwC Autofacts®16
Market performance of top OEMs
Market capitalisation growth varies, majority fell short of large indices
*Combined market capitalisation of according brands
Source: PwC Autofacts analysis, S&P Capital IQ Pro
0
2
4
6
8
10
12
Tesla Toyota BYD Hyundai-Kia* Mercedes-
Benz VW GM Ford
2024 sales (in million)
Stellantis RNM* Suzuki Geely
18
Honda
21
BMW
1,023
28
1,301
52
251
225
107
141
59 61 56 53 51 53 49 47 40 43 44 40 37 29
58
25 23 23
-21%
-10%
+32%
+4% -3% +2% +4% -4%
+8% -9%
-22% -12%
+0%
+11%
Jan-25 Jun-25 2024 sales
Market capitalisation of top OEM groups
(in billion USD)
Large index performances
MSCI World: +5%
S&P 500: +3%
3
Market Update
PwC Autofacts®17
Overproduction of newcomer brands
Tesla overproduced 52,000 units so far this year, while BYD succeeded to
compensate for the overproduced Q1 cars in the second quarter
*Positive values indicate overproduction
Source: PwC Autofacts analysis, quarterly reports of OEMs
11%
2024
-8%
Q2
1%
Q3
-8%
Q4
7%
2025
6%
Q2
387 433 444 411 463 470 496 459
337 363 384 410
Production vs. sales of Tesla and BYD
(sales and production in thousand, overproduction in %*)
Tesla
Sales Production Overproduction
3
-2%
2024
3%
Q2
-1%
Q3
1%
Q4
5%
2025
-6%
Q2
626 612
987 1,020
1,135 1,129
1,524 1,543
1,057
1,001
1,145 1,080
BYD
Market Update
PwC Autofacts®
2022 2023 2024 2025 2026 2027 2028 2029 20302019 2020 2021
2.9
2.4
3.0
4.0
3.7
4.2 4.4 4.6 4.7 5.0
5.5
5.2
CAGR
+8%
CAGR
+4%
18
Indian passenger car market
India is steadily emerging as a significant market, surpassing Japan in 2022 to
become the third-largest market
India passenger car sales development Top selling OEM groups
(in million)
Source: PwC Autofacts analysis, S&P Global Mobility LV Sales Forecast June 2025 release
Brand 2024
sales Share
of total YoY
Suzuki 1,616,000 38% +4%
Hyundai-Kia 851,000 20% -1%
Tata 568,000 13% +2%
Mahindra & Mahindra 521,000 12% +19%
Toyota 302,000 7% +37%
Volkswagen 86,000 2% -14%
RNM 71,000 2% -9%
Honda 70,000 2% -17%
SAIC 59,000 1% +4%
Mercedes-Benz 20,000 0% +10%
Total market 4,209,000 100% +5%
CAGR
Global market
-0%
CAGR
Global market
+1%
3
Market Update
PwC Autofacts®19
EU imports from China
BEV imports nearly reached last year's levels, while imports of other powertrain
types more than doubled, equaling the volume of BEV imports
Imported vehicles from China to the EU Key insights
(in thousand, accumulated)
*Other powertrain types excluding BEVs
Source: PwC Autofacts analysis, General Admission of Customs China
0
50
100
150
200
250
300
350
400
450
500
Jan Feb Mar Apr May Jun Sep Oct Nov Dec
•New EU import tariffs on BEVs “made in
China” impacted import volumes to the
EU during the first four months of the
year
•BEV imports jumped by 27% YoY in May
and again by 35% to 37,000 units in June
•The YTD gap to June 2024 shrunk to -3%
or -7,000 units
•Imports of other powertrain types* (not
impacted by new EU import tariffs) have
surged since the beginning of 2025 and
more than tripled YoY for the second
consecutive month in June
•YTD volumes of other powertrain types*
reached 214,000 units in June, up by 116%
over past year, almost matching BEV
import volumes
Jul Aug
2025 Other*
2025 BEV 2024 BEV 2024 Other*
3
Market Update
PwC Autofacts®20
Leading countries in EV penetration
BEV and PHEV sales growth lags in France, while PHEV growths experiences a
strong increase in Spain and Germany
*EU27+UK+EFTA; **More than 35,000 BEVs or 17,000 PHEVs sold in June 2025 YTD
Source: PwC Autofacts analysis, ACEA, CAAM, ANL
94%Norway
64%Denmark
35%Sweden
35%Netherlands
33%Belgium
22%UK
18%Germany
18%France
17%Europe*
30%China
26%Sweden
20%Netherlands
10%UK
10%Germany
9%Spain
8%Belgium
6%France
5%Italy
9%Europe*
17%China
BEV market share of leading European* countries**
(June 2025 YTD, YoY change BEV (rest of market)) PHEV market share of leading European* countries**
(June 2025 YTD, YoY change PHEV (rest of market))
+38% (-48%)
+47% (-32%)
+18% (+1%)
+6% (-11%)
+20% (-21%)
+35% (-10%)
+35% (-3%)
-6% (-8%)
+25% (-5%)
+47% (+1%)
USA 7% +6% (+3%)
+19% (+3%)
+29% (-11%)
+31% (+1%)
+55% (-9%)
+83% (+10%)
-57% (-1%)
-33% (-6%)
+56% (-6%)
+21% (-3%)
+19% (+10%)
USA 2% -8% (+4%)
3
Market Update
PwC Autofacts®21
European* BEV penetration
BEV sales in Europe* rose in June with France and Romania being the only outliers
for the second consecutive month
Europe* BEV sales development** Key insights
(in %, June 2025 YTD)
*EU27+UK+EFTA; **Countries with over 3,000 BEVs sold in June 2025 YTD
Source: PwC Autofacts analysis, ACEA
•France and Romania are currently the only
countries among the analysed countries** that
have experienced consistent YoY declines
throughout the year, with France reporting
negative 6% and Romania 44% decline
•Despite being seemingly saturated, Norway
shows 38% sales increase YoY; Denmark
continues to show high double-digit
growth as well with 47% YoY
•After reclaiming the title as the top BEV
country in April, Germany has further
extended its lead over the second largest
BEV market, the UK
•Spain now has the highest YoY increase of
all analysed countries** with 84% followed by
Czech Republic and Poland recording
67% and 61% respectively; Italy has fallen
behind, only showing a 28% increase
-10%-45%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Portugal
-5% 0% +5% +10% +15% +20% +25% +30% +35% +40% +45% +50% +55% +60% +65% +85%
BEV YoY growth rate
Poland
BEV share 100%
Ireland
Europe* Czechia
Germany
Luxembourg
Switzerland
Hungary
United Kingdom
France
Romania
Norway
Netherlands
Denmark
Belgium
Sweden Finland
Spain
Austria
Greece
Italy
250,000
3
Market Update
PwC Autofacts®22
ICE vs. NEV* market share China
BYD is both the total market and NEV market leader as of H1 2025
*NEV = PHEVs + BEVs; ICE = all powertrains excluding PHEVs and BEVs, including MHEVs and FHEVs; **VW JV sales include respective VW Group brands
Source: PwC Autofacts analysis, CPCA
52% 50%
13%
13%
8%
10%
9%
9%
8%
8%
6%
0%
0%
0%
0%
48%
50%
1%
0%
8% 13%
1%
1%
4%
4%
6%
34%
29%
6%
5%
FY 2024
YTD 2025
% market share out of total ICE market % market share out of total NEV* market
FY 2024
YTD 2025
•NEV market share surpassed 50% in H1
2025, on account of sales growth by 33% over
H1 2024
•BYD is the top seller in the total passenger
car market as well as NEV market during H1
2025, while Geely follows in both
categories
•Among the biggest ICE makers are the
Volkswagen JVs, both of which managed to
expand ICE market shares, in a declining
segment, while NEV shares lagged
•In the first half of this year, Tesla dropped
from third to fifth place in NEV sales
compared to the same period last year
ICE vs. NEV* market share in China
FY 2024 vs. June 2025 YTD
China
FAW-VW**
Geely
SAIC VW**
Chery
Changan
6%
7%
2%
SAIC-GM-
6%
1%
Wuling
6%
BYD Auto
Tesla
Key insights
3
Market Update
PwC Autofacts®23
ICE* vs. BEV market share Germany
*ICEs including PHEVs, MHEVs and FHEVs
Source: PwC Autofacts analysis, KBA
87% 82%
20%
20%
9%
10%
8%
8%
7%
8%
7%
7%
6%
6%
6%
5%
0%
0%
14% 18%
16% 21%
9%
6%
11%
9%
7% 9%
6% 8%
5%7%
2%4%
10%
4%
FY 2024 vs. June 2025 YTD
Germany
Volkswagen
Mercedes-
Benz
BMW
Audi
Skoda
Seat
Opel
Tesla
% market share out of total ICE* market % market share out of total BEV market
Tesla continues to lose ground while Opel enters the ranking securing seventh
place
Key insights
ICE* vs. BEV market share in Germany
•ICE as well as BEV market shares
remain unchanged to the previous month
May
•The top 7 best-selling OEMs all grew
their ICE market shares (except for Audi
and Opel) over FY 2024 to a combined 64%
•While every OEM held their market share from
May 2025, Volkswagen lost 1% market
share in BEVs as well as in ICEs
•Tesla, once a top 3 BEV brand, lost 6%pt
over the same period despite updated
models amid reactions to the CEO in recent
months and more competition in the market
FY 2024
YTD 2025 FY 2024
YTD 2025
3
Market Update
PwC Autofacts®24
Sales performance by brand origin
Chinese OEMs continue to gain market share in their domestic market, but remain
a niche player in Europe*
*EU27+UK+EFTA
Source: PwC Autofacts analysis, ACEA, CAAM
Market share in Europe* by brand origin
(in % of European* passenger car sales)
29%
14%
6%
41%
0%
10%
20%
30%
40%
50%
2019
2020 2021 2022 2023 2024 June 2025 2019 2020 2021 2022 2023 2024 June
2025
YTD YTD
2%
Market share in China by brand origin
(in % of Chinese passenger car sales)
69%
13%
6%
0%
10%
20%
30%
40%
50%
60%
70%
10%
Europe excl.
German OEMs
3
Market Update
PwC Autofacts®
Country Tax Benefits Purchase Incentives
Germany
Ownership: 10-year exemption for BEVs and FCEVs registered until the end of 2025,
exemption granted until 2030 (currently discussed to extend until 2035); Company
cars: Reduction of taxable amount for BEVs and PHEVs from 1% to 0.5%, additional
reduction to 0.25% for BEVs up to €100,000; From 2025: 40% cost write-off, applying
to company BEV purchases from July 2024 to December 2028
2025:
Newly elected government planned to relaunch a subsidy, but there is no
mentioning
in the new coalition agreement of the current government
Spain
Acquisition: Exemption from “special tax” for cars ≤120g CO2/km; Canary Islands:
VAT exemption partially; Ownership: Road tax reduction of up to 75% for BEVs in
Spanish main cities (e.g., Barcelona); Company cars: 30% for BEVs/PHEVs ≤ €40,000
MOVES
III is further extended until 31 December 2025: Subsidy program of €1,550m:
Up
to €7,000 for passenger BEVs/FCEVs/PHEVs, depending on electric range and
whether
a vehicle is being scrapped; MOVES IV is planned for 2026.
France
Acquisition: Exemption from the mass-based malus for BEVs, FCEVs and PHEVs
(range of >50km); Company cars: Exemption for CO2-based tax components (“TVS”)
for vehicles emitting less than 60g CO2/km; 50% reduction on Benefit-in-Kind (BIK) for
BEVs has been extended until 31 December 2025, with an annual cap of €1,800
2025:
BEVs and FCEVs purchase subsidy from €2,000-€7,000. The eco-bonus will be
income
-dependent and tied to CO2 emissions from vehicle and battery production.
Purchase
price of vehicle must not exceed 47.000€ and a weight of 2.4 tons. No purchase
incentives
for companies.
UK
Company cars: Reduced tax rates for BEVs and ultra-low emission cars (<75g
CO2/km), 2% until 2025 and progressively increasing afterwards until April 2028
For 2025: EVs registered after 1 April 2025 need to pay £ 10 VED for the first year. From
the second tax payment onwards the standard rate of £ 195 is applied. On April 1, the
expensive car tax supplement for BEVs costing more than £40,000, came into force.
July
2025: Up to £3750 on BEVs below £37,000 starting July 16th 2025 until 2028-29
or
until the funding of £ 650 Mio. is used up. Split into two Groups regarding the
sustainability
of the BEV; Group 1: £3750/Group 2: £1500.
Ownership: Five-year exemption for EVs from the date of first registration, 75%
reduction afterwards; Company cars: taxable value of a company-provided BEV for
private use is 10% of the standard amount (for PHEVs 20%), versus 50% for ICEs.
25
Incentive programs in Europe*
As part of the support for the automotive transformation, subsidies are concentrated
on BEV promotions, while PHEV subsidies continue to be phased out
*Overview contains only the most relevant subsidies, not exhaustive
BEV = Battery Electric Vehicle; PHEV = Plug-In Hybrid Vehicle; FCEV = Fuel Cell Electric Vehicle
Italy
Change compared to previous release
3
Market Update
PwC Autofacts®
Country Tax Benefits Purchase Incentives
USA
Acquisition:
Federal tax credit up to $7,500 for BEVs and PHEVs until the end of
September
2025, after the Trump Administration’s “Big Bill”. New draft law provides for
the
abolition of the tax credit for new, used and leased vehicles.
Inflation
Reduction Act: Effective since August 2022, final assembly of the vehicle
must
be in North America to qualify for tax credit. As of 1 January 2024, 60% of battery
components
(100% in 2029) and 50% of the value of minerals need to be sourced from
the
US or a free trade partner to qualify for full credit
States
subsidize electric cars differently (in addition to federal tax credit); The
Trump
Administration plans to end purchase incentives, but lacks Senate approval
China
Acquisition:
Purchase tax exemption for applicable BEVs, PHEVs and FCEVs of up to
¥ 30,000
(~€3,600) per vehicle between 2024 and 2025. The exemption will be
halved
for purchases made in 2026 and 2027
January
2025: National trade-in subsidies, previously set to expire by end of
2024,
extended for 2025. Broader scope for 2025: ¥ 20,000 (~€2,400) if ICE or
NEV
(ICEs registered before July 2012 and NEVs registered before 2019) is traded in for
a
new NEV, ¥ 15,000 (~€1,800) if old vehicle is scrapped for a modern ICE with max.
2L
displacement
Japan
Acquisition:
Purchase tax is abolished for private and business cars in favour for a tax
based
on fuel efficiency and environmental criteria
State
subsidy scheme for BEVs: Up to ¥ 850k (~€5,100) with additional conditions;
FCEVs:
Up to ¥ 2.55m (~€15,400); PHEVs: Up to ¥ 550k (~€3,300). Further
evaluation
items apply to realize the subsidy amount, such as manufacturers’ ability to
respond
to repair and maintenance needs or efforts to collect used batteries
Acquisition: Up to ₩1.4m can be deducted from the acquisition tax amount. Up to
₩3m can be deducted from the individual consumption tax and up to ₩900k from
the education tax. If the individual consumption tax is ₩0, then there is also no
South
Korea education tax (which is 30% of the consumption tax); temporary tax cut of 3.5% until
June 2025
2025:
Budget for passenger EVs will tighten to ₩780b (~€520m); price criteria for full
subsidy
will drop from ₩55m (~€37,000) to ₩53m (~€35,000); maximum subsidy
reduced
by 10% to ₩5.8m (~€3,900); BEVs with ranges below 440km per charge will see
subsidy
reductions of up to ₩81k (~€54€) per 10km difference; expanded EV subsidies,
now
covering 30%–80% of prices (up from 20%–40%) and extended through year-end
26
Incentive programs in RoW*
As part of the support for the automotive transformation, subsidies are concentrated
on BEV promotions, while PHEV subsidies continue to be phased out
*Overview contains only the most relevant subsidies, not exhaustive
BEV = Battery Electric Vehicle; PHEV = Plug-In Hybrid Vehicle; FCEV = Fuel Cell Electric Vehicle Change compared to previous release
3
Market Update
PwC Autofacts®
Global and regional
markets analysis
Market Update
PwC Autofacts®
4
5
6
7
8
Sep Oct Nov Dec
28
Sales: Global
Despite geopolitical tensions surrounding withheld rare-earth elements and high
import tariffs, passenger car sales have demonstrated robust performance
*EU27+UK+EFTA; **Analysed markets include Australia, Austria, Belgium, Brazil, China, Denmark, Finland, France, Germany, India, Indonesia, Italy, Japan,
Netherlands, Norway, Portugal, Rest of EU27+UK+EFTA, South Korea, Spain, Sweden, Switzerland, Turkey, UK, USA
Source: PwC Autofacts analysis, S&P Global Mobility LV Sales April 2025 release
80
75
70
65
60
Passenger car sales
(in million) Key insights
In June, global passenger car sales grew 2% YoY to 6.4 million units,
maintaining the zigzagging pattern around the 0% growth mark. For H1 of
2025, sales remained largely at previous year’s levels despite the two
largest single markets China and USA jumping by +14% and +4%,
respectively. Europe* and countries outside the key markets dampened the
growth with -2% and -20% YoY, respectively. EV sales** on the other hand
provided a clear upward trajectory. BEV sales leapfrogged by +37%, while
PHEVs and Hybrids jumped by +20% and 18% YoY in H1 2025, respectively.
With ongoing trade tensions affected by withheld rare earth exports and/or
high import duties on automotive products, the PwC Base Scenario
forecasts a slight 3% YoY growth for the third quarter.
10-year benchmark
(in million, 2015-2025)
Year Sales (in million) YoY growth Q3 YoY growth
Past
2019 74.6
2024 74.1 +2% -3%
PwC
Scenari
os
2025 – Upside 76.3 +3% +8%
2025 – Base 74.5 +1% +3%
2025 – Downside 72.1 -3% -3%
The PwC Base Scenario predicts a
slight growth of +1% YoY for 2025,
surpassing last year’s figure by 439,000
units. The gap to the 10-year high in
2017 is forecasted to remain at 4.9
million units.
2020
2017
2024
2025 Base
2019
2024 Upside Scenario 2025
Base Scenario 2025
Jan Feb Mar Apr May Jun Jul Aug
Downside Scenario 2025
4
Market Update
PwC Autofacts®
0.0
0.5
1.0
1.5
2.0
Sep Oct Nov Dec
29
Sales: Europe*
In June 2025, sales across Europe saw their most significant decline so far this
year, with the EU5 countries experiencing a sharper drop
*EU27+UK+EFTA
Source: PwC Autofacts analysis, ACEA
4
10
12
14
10-year benchmark
(in million, 2015-2025)
16 2019
Passenger car sales
(in million) Key insights
June sales across Europe decreased by nearly 6% compared to the
previous year. Notably, the EU5 countries displayed diverse trends.
Examining the YoY data reveals that France experienced a decrease of 7%,
whereas Italy faced a sharp decline of 18%. In contrast, Spain enjoyed a sales
increase of 15%, with the UK following suit with a 7% rise. Collectively, these
changes plus Germany resulted in a nearly 6% YoY negative growth for
the EU5 in June. On a YTD basis, sales for the EU5 also declined by
1%. Meanwhile, the remainder of Europe saw a decrease of 5% YoY in
June.
Looking ahead, the PwC Base Scenario forecasts a 5% increase in sales for
Q3, though annual sales are anticipated to experience a slight decline overall.
Year Sales (in million) YoY growth Q3 YoY growth
Past
2019 16.0
2024 13.0 +1% -6%
PwC
Scenari
os
2025 – Upside 13.2 +1% +9%
2025 – Base 13.0 -0% +5%
2025 – Downside 12.8 -2% +2%
The PwC Base Scenario forecast remains
largely unchanged, still anticipating a
slight decline in sales for 2025. Total
sales of 13 million units, reflects a similar
gap of approximately 3 million
units compared to the 10-year peak
reached in 2019.
2024
2025 Base
2022
2019
2024 Upside Scenario 2025
Base Scenario 2025
Jan Feb Mar Apr May Jun Jul Aug
Downside Scenario 2025
Market Update
PwC Autofacts®
100
200
300
400
Sep Oct Nov Dec
30
Sales: Germany
June has marked the most significant decline of 2025 so far, following the first
positive change observed this year in May
*Incl. BEV, PHEV and Hybrid
Source: PwC Autofacts analysis, KBA
4
3,75
3,50
3,25
3,00
2,75
2,50
Passenger car sales
(in thousand) Key insights
Following a brief period of growth in May, Germany has reported a
significant downturn in YoY sales once more. This represents the most
substantial decline in sales so far thus year. YoY sales in June dropped by
14%, totalling 257,000 units. A similar trend is apparent from a YTD
perspective, with sales down by 5% compared to 2024. The downturn has
persisted since August 2024, with June 2025 marking the steepest drop in
sales recorded. The anticipated reintroduction of incentives for BEVs by
the newly established federal government could boost the current sales
trend, as some consumers are presently postponing their purchases.
For Q3, the PwC Base Scenario anticipates a 6% increase in sales.
Annual growth is projected to remain mildly negative.
10-year benchmark
(in million, 2015-2025)
Year Sales (in million) YoY growth Q3 YoY growth
Past
2019 3.6
2024 2.8 -1% -13%
PwC
Scenari
os
2025 – Upside 2.8 +1% +9%
2025 – Base 2.8 -0% +6%
2025 – Downside 2.8 -2% +2%
The PwC Base Scenario continues to
project 2.8 million units sold in
2025, which is 14,000 units fewer than
in 2024, edging closer to the 10-year
low of 2021 by a gap of 7%.
2019
2025 Base
2024
2021
2019
2024 Upside Scenario 2025
Base Scenario 2025
Jan Feb Mar Apr May Jun Jul Aug
Downside Scenario 2025
Market Update
PwC Autofacts®
0.5
1.0
1.5
2.0
2.5
3.0
Sep Oct Nov Dec
28
26
24
22
20
18
31
Sales: China
June sees a 12% surge in passenger car sales, boosting H1 2025 totals; NEV sales
flourish amid trade-in subsidies and anticipated policy changes
*NEV = PHEVs + BEVs
Source: PwC Autofacts analysis, CAAM
Passenger car sales
(in million) Key insights
Passenger car sales in June grew by 12% to over 2 million units, while
H1 2025 resulted in nearly 11 million units being sold. Passenger car exports
also grew during the first half of the year, by 10% to 2.6 million units.
Equally rosy is the state of NEV* sales, which increased by 34% domestically to
5.5 million passenger cars during H1 2025. The robust performances of the
domestic market in China can be accredited to the continued pay-off of the
trade-in subsidies, which was boosted again by the government in July.
Combined with the anticipated rollback of the NEV purchase tax reduction by
the end of 2025, as well as the numerous new product offers, the car market is
set to significantly outperform 2024. The PwC Base Scenario expects to see
a 5% growth in total car sales in 2025 over 2024.
10-year benchmark
(in million, 2015-2025)
Year Sales (in million) YoY growth Q3 YoY growth
Past
2019 21.4
2024 22.6 +5% -1%
PwC
Scenari
os
2025 – Upside 24.3 +7% +9%
2025 – Base 23.8 +5% +5%
2025 – Downside 23.3 +3% +1%
A more optimistic forecast for the
Chinese market in the PwC Base
Scenario widens the gap between
2025 and 2024, now projected at
nearly +1.2 million units.
2017
2025 Base
2024
2020
2019
2024 Upside Scenario 2025
Base Scenario 2025
Jan Feb Mar Apr May Jun Jul Aug
Downside Scenario 2025
4
Market Update
PwC Autofacts®
0.75
1.00
1.25
1.50
1.75
Sep Oct Nov Dec
32
Sales: USA
June Sales Dip Amid Anticipation of Price Hikes: BEV and Hybrid Markets Show
Resilience with Q3 momentum expected
*Light duty vehicles incl. cars and light trucks; **BEV, PHEV and HEV
Source: PwC Autofacts analysis, ANL
4
18
17
16
15
14
13
Passenger car* sales
(in million) Key insights
In June, total sales declined 4% following three consecutive months
of YoY growth. Consumers have been accelerating their purchases ahead of
vehicle price hikes. BEV sales dropped by 3% in Q2, marking the first quarterly
YoY decrease since the COVID-impacted year of 2020. Despite this, YTD BEV
sales remain up by 6% and hybrid sales have surged by 41%. BEV sales will
likely rebound in Q3 as consumers look to take advantage of the $7,500 EV
tax credit before it expires. At the same time, overall sales will likely continue
to struggle due to elevated prices driven by tariffs.
The PwC Base Scenario forecasts a YoY decline of -2% for the full year
due to a sluggish H2. H1 sales finished up nearly 4% but Q3 YoY growth is
expected to be -4%.
10-year benchmark
(in million, 2015-2025)
The PwC Base Scenario anticipates a
decline in sales of 349,000 units
for 2025 in comparison to 2024. Sales
therefore remain 2.0 million units below
the 2016 peak of 17.5 million.
2022
2016
2024
2025 Base
Year Sales (in million) YoY growth Q3 YoY growth
Past
2019 17.1
2024 15.9 +3% -2%
PwC
Scenari
os
2025 – Upside 15.9 +0% +0%
2025 – Base 15.5 -2% -4%
2025 – Downside 14.9 -6% -11%
2019
2024 Upside Scenario 2025
Base Scenario 2025
Jan Feb Mar Apr May Jun Jul Aug
Downside Scenario 2025
Market Update
PwC Autofacts®
0.0
0.5
1.0
1.5
2.0
Sep Oct Nov Dec
33
Production: Europe*
Despite double-digit growth across all EV** powertrains in the first half of 2025,
these gains have not been sufficient to offset Europe’s* overall production slump
*EU+UK+EFTA; **BEV, PHEV and HEV
Source: PwC Autofacts analysis, S&P Global Mobility LV Production June 2025 release
4
10
12
14
16
Passenger car production
(in million) Key insights
European passenger car production marked its 14th consecutive month of
YoY decline, falling by 8% in June 2025, yet still surpassing one million
units. The volume drop led to a half-year deficit of 2% or -541,000 units
to last year’s H1. Germany, the largest producer, remained at 2024 levels
in H1, while only France among the EU5 members recorded growth at
+2%. Italy (-44%), Spain (-20%) and the UK (-10%) all suffered production
losses. However, EV** powertrains saw double-digit YoY growth in H1
with BEVs jumping by +32%, PHEVs by +12% and Hybrids by +13%.
With BMW and BYD ramping up production in Hungary and Chery
in Spain later this year, the PwC Base Scenario predicts a mild 1% YoY
increase for the third quarter of 2025.
10-year benchmark
(in million, 2015-2025) The PwC Base Scenario forecasts a
4% drop over 2024 for the full year
amid a weak first half-year
performance, further growing the gap to
the 10-year high of 2017 to -29% or -
4.9 million units.
2017
2024
2025 Base
2021
Year Prod. (in million) YoY growth Q3 YoY growth
Past
2019 15.4
2024 12.2 -7% -5%
PwC
Scenari
os
2025 – Upside 12.0 -2% +6%
2025 – Base 11.7 -4% +1%
2025 – Downside 11.5 -6% -2%
2019
2024 Upside Scenario 2025
Base Scenario 2025
Jan Feb Mar Apr May Jun Jul Aug
Downside Scenario 2025
Market Update
PwC Autofacts®34
The year 2025 up to June
Global sales growth is led by Asia and North America with Europe* falling behind
*EU27+UK+EFTA
Source: PwC Autofacts analysis, local statistics, S&P Global Mobility LV Sales & Production June 2025 release
4
June 2025 Sales June 2025 Production
Region Year-
to-date YTD
vs. 2024 YTD
vs. 2019 Month Month
vs. 2024 Month
vs. 2019 Year-
to-date YTD
vs. 2024 YTD
vs. 2019 Month Month
vs. 2024 Month
vs. 2019
Europe* 6,816,000 -1% -20% 1,244,000 -6% -17% 6,019,000 -8% -28% 1,025,000 -4% -22%
France 842,000 -8% -28% 170,000 -7% -26% 456,000 +2% -50% 82,000 +5% -37%
Germany 1,403,000 -5% -24% 256,000 -14% -21% 2,010,000 +0% -16% 336,000 +0% -7%
Italy 860,000 -3% -21% 132,000 -18% -24% 115,000 -44% -66% 21,000 -22% -63%
Spain 610,000 +14% -19% 119,000 +15% -15% 845,000 -20% -28% 149,000 -13% -26%
UK 1,042,000 +4% -18% 191,000 +7% -14% 375,000 -10% -44% 63,000 +2% -42%
Rest of Europe* 2,058,000 -2% -14% 375,000 -5% -10% 2,218,000 -8% -22% 374,000 -5% -18%
North America 9,786,000 +4% -3% 1,548,000 -3% -14% 5,469,000 -8% -14% 914,000 -1% -13%
USA 8,100,000 +4% -4% 1,254,000 -4% -17% 3,618,000 -8% -7% 603,000 +1% -3%
Canada 976,000 +8% -0% 178,000 +5% -1% 527,000 -16% -44% 80,000 -12% -53%
Mexico 709,000 +1% +11% 116,000 -6% +9% 1,324,000 -5% -15% 231,000 -4% -11%
Asia 13,746,000 +12% +4% 2,509,000 +11% +12% 17,420,000 +3% +11% 3,104,000 +2% +22%
China 10,957,000 +14% +8% 2,034,000 +12% +18% 12,118,000 +5% +27% 2,216,000 +5% +43%
Japan 1,989,000 +11% -13% 329,000 +6% -10% 3,515,000 +4% -17% 601,000 +1% -13%
South Korea 799,000 +0% -8% 146,000 +6% +1% 1,787,000 -9% -4% 287,000 -13% -6%
RoW 6,723,000 -20% -10% 1,378,000 -3% +13% 8,728,000 -2% -6% 1,476,000 +1% +3%
Turkey 488,000 +5% +212% 94,000 +7% +160% 433,000 -9% -8% 65,000 -7% -8%
Global 35,500,000 +0% -4% 6,397,000 +2% +0% 35,851,000 -2% -4% 6,209,000 +1% +4%
Market Update
PwC Autofacts®
Appendix
Market Update
PwC Autofacts®36
Scenarios and assumptions
Key drivers of three PwC Autofacts® global scenarios
5
Analysis Assumptions for Demand Assumptions for Production Total Effects
Upside Scenario
A significant rise in BEV demand is anticipated in
Europe due to the implementation of stricter CO2
emission targets. In China, the continuation of the
scrappage scheme is expected to boost demand for
NEVs. Additionally, potential interest rate cuts could
reduce the cost of new vehicles for consumers, further
stimulating market demand.
An increasing number of new, affordably priced BEV
models are being introduced across all major markets.
While discussions on localization and production
efficiency measures are ongoing, their implementation
remains limited, helping to keep production costs
down.
Strong economic growth and stability with global
economies experiencing robust growth supporting an
increase in vehicle production and sales. Supportive
policies towards ICE and BEV production further
enhance consumer confidence, stimulating higher
demand in the market.
Base Scenario
The economic outlook is generally stable, although
concerns about potential recessions persist. In
Europe, the demand for BEVs is projected to rise due
to stricter CO2 emission targets. Moreover, additional
discounts on BEVs are expected to further boost
consumer interest. In China, the extension and
expansion of the scrappage scheme will generate
increased demand for new vehicles.
An increasing number of new, affordably priced BEVs
are being launched across all major markets.
Discussions about tariffs and new government
measures are intensifying due to localisation and
protective strategies. Meanwhile, OEMs are reducing
production as order backlogs diminish and inventory
levels rise.
Moderate economic growth with global economies
continuing to grow at a steady pace, supporting a
gradual increase in vehicle production and sales.
Governments maintain a balanced approach with
policies that encourage vehicle production and sales
without major new incentives or restrictions.
Downside Scenario
Although inflation is less of a concern in 2025, it
remains above target levels in some regions and is
expected to persist for the foreseeable future, leading
to increased borrowing costs. While a major trade war
is not anticipated in the downside scenario, impacts
are expected, resulting in higher vehicle prices and
reduced demand. Additionally, the 2025 EU CO2
targets may lead to increased prices for vehicles.
With new tariffs introduced, OEMs may decrease the
production of models that are not economically viable
and reduce the output of models intended for export
to the U.S. Additionally, the 2025 EU CO2 targets
might lead some OEMs to limit the production of
ICEs. The ongoing shortage of affordable new models
could drive some consumers to opt for used cars
instead.
Global economic conditions deteriorate, largely due to
geopolitical tensions, which are undermining
consumer confidence and reducing both spending and
sales. This challenging environment is compounded by
persistent inflation, elevated interest rates, and U.S.
tariffs.
Market Update
PwC Autofacts®
Abbreviation Full description
BEV Battery electric vehicle
EFTA European Free Trade Association (incl. Iceland, Liechtenstein, Norway and Switzerland)
EU European Union
EU5 Five largest European countries by passenger car sales (incl. France, Germany, Italy, Spain, United Kingdom)
Europe EU27+UK+EFTA
EV Electric vehicle (incl. BEV, PHEV and HEV)
FHEV Full-hybrid electric vehicle
FY Full year
HEV/hybrid Hybrid electric vehicle
ICE Internal combustion engine
MHEV Mild-hybrid electric vehicle
MSRP Manufacturer’s suggested retail price
NEV New energy vehicle (incl. BEV and PHEV)
PHEV Plug-in hybrid electric vehicle
RoW Rest of world
YoY Year-on-year
YTD Year-to-date
37
Glossary
5
PwC
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