Global auto industry shifts east as growth returns in 2025, OICA says

The global automotive industry returned to growth in 2025, but the recovery masked a major shift in momentum toward Asia, as Europe stagnated and the Americas faced increasing structural pressures, new data shows.

Figures released by the Organisation Internationale des Constructeurs d’Automobiles (OICA) reveal that global vehicle production rose 3.9% to 96.4 million units in 2025, up from 92.7 million in 2024. Global sales also increased by 4.7%, reaching 99.8 million vehicles.

Despite the overall gains, industry leaders say the data points to a deeper transformation in the global automotive landscape.

“The automotive industry remains one of the world’s leading industrial forces, but it is now moving through a far more complex global environment than at any point in recent years,” he said, pointing to rising uncertainty around trade, supply chains, energy costs and differing approaches to electrification.

Asia drives global growth

Asia continued to dominate the sector in 2025, with production in the Asia-Pacific region rising 7.6% to around 59.2 million vehicles, more than 61% of global output. Sales across Asia, Oceania and the Middle East climbed 7.1% to 55.02 million units, accounting for over half of global demand.

China remained the world’s largest automotive market, increasing production by roughly 3.25 million units to 34.53 million vehicles. The country also saw rapid growth in new-energy vehicles, with output rising 29% to more than 16.6 million units.

India emerged as another key growth engine, with production reaching 6.49 million vehicles and record domestic sales. Japan maintained its position as a major manufacturing base, producing 8.41 million vehicles.

“The most important question is no longer simply whether the global automotive industry is growing,” he said. “The real question is where competitiveness is shifting. The 2025 data are not just a scoreboard; they are a map of industrial repositioning.”

Europe flat, Americas mixed

Europe’s performance remained largely stagnant. Production slipped 0.8% to 17.2 million vehicles, while sales edged down 0.4% to 18.63 million. Germany retained its role as the region’s largest producer, but declines in the UK and ongoing weakness in Italy highlighted uneven industrial adjustment.

In the Americas, production fell 2.1% to 18.74 million vehicles, even as sales rose 2.9% to 24.86 million. The United States remained a major market, producing 10.24 million vehicles and selling 16.7 million, though OICA warned of growing exposure to tariffs, trade frictions and localisation pressures.

Mexico continued to play a central role in North American manufacturing, while Brazil stood out as a stronger performer with production reaching 2.64 million vehicles.

Africa rebounds from smaller base

Africa recorded one of the fastest growth rates globally, albeit from a smaller base. Vehicle sales rose 22% to 1.29 million units, with South Africa and Morocco remaining key industrial hubs on the continent.

Industry faces structural shift

OICA said the industry continues to invest heavily in clean technologies, digital innovation and safety, but is now navigating a more fragmented global environment shaped by diverging policies and regional dynamics.

As the sector undergoes long-term transformation, the organisation said its role remains focused on helping policymakers and industry stakeholders understand these shifts while promoting safer, cleaner and more efficient mobility worldwide.