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Global Automotive Industry Returned To Growth In 2025, Says OICA President And Tata Motors Passenger Vehicles MD & CEO Shailesh Chandra

Beijing / Bengaluru, NFAPost: The International Organisation of Motor Vehicle Manufacturers (OICA) on Tuesday released Global Automobile Industry’s Annual Sales Data at the sidelines of the Beijing Motor Show, which states that the global automotive industry returned to growth in 2025, but the recovery was far from uniform.

New figures presented by the International Organisation of Motor Vehicle Manufacturers (OICA) at a press conference in Beijing by OICA President, SIAM President and Tata Motors Passenger Vehicles Ltd Managing Director & CEO Shailesh Chandra states that the sector remains resilient, yet increasingly fragmented by region, technology pathways and policy environment.

“Global vehicle production rose from 92.7 million units in 2024 to 96.4 million in 2025 (+3.9%), while global sales climbed from 95.3 million to 99.8 million units (+4.7%). Behind those headline gains lies a more profound industrial shift: growth is concentrating in Asia, while Europe stagnates and the Americas face widening tensions between demand, production and trade conditions,” said OICA President Shailesh Chandra.

The 2025 results confirm a sector that is still investing heavily in clean technologies, digital innovation and safety, but must now navigate a more fragmented global environment than before.

Geographical repositioning in a complex global environment

Speaking at the conference, hosted by the China Association of Automobile Manufacturers (CAAM), OICA President Shailesh Chandra said the latest data illustrate both the strength and the complexity of the current 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. The 2025 figures are a snapshot of an industry in transition – still resilient, still investing, but facing increasingly differentiated realities across markets,” said OICA President Shailesh Chandra.

Shailesh Chandra noted that manufacturers are simultaneously dealing with slowing growth in some regions, rising competition in others, and persistent uncertainty over trade, supply chains, affordability, energy costs and diverging approaches to electrification.

“The global automotive industry is being reshaped by technological change, geopolitical pressures and diverging public policies. The industry remains resilient, but the environment has become far more demanding. Manufacturers are managing slower growth in some markets, fiercer competition in others, and continued uncertainty linked to trade tensions, supply chains, affordability, energy prices and the pace of electrification,” said OICA President, SIAM President and Managing Director & CEO Tata Motors Passenger Vehicles Ltd Shailesh Chandra.

2025 data ‘a map of industrial repositioning’

For OICA Secretary General François Roudier, the main finding from the 2025 production and sales figures was the stark realignment of the industry’s geographical repositioning.

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

He added that OICA’s role is not only to collect global production and sales figures, but also to interpret the major structural changes reshaping mobility.

“Our task is to understand these shifts clearly, measure them accurately, and help ensure that the future of mobility remains safer, cleaner and smarter,” he added. As the industry continues its long-term transformation, OICA said its mission remained clear: to represent the global automotive industry and its member associations at the United Nations, provide a reliable international perspective, and help policymakers and stakeholders better understand where the sector is heading next.

The automotive sector globally is also investing massively in cleaner technologies, digital innovation and safety, while adapting to highly diverse consumer expectations and regulatory pathways across regions.

Shailesh Chandra noted that manufacturers are simultaneously dealing with slowing growth in some regions, rising competition in others, and persistent uncertainty over trade, supply chains, affordability, energy costs and diverging approaches to electrification.

2025 data ‘a map of industrial repositioning’

For OICA Secretary General François Roudier, the main finding from the 2025 production and sales figures was the stark realignment of the industry’s geographical repositioning.

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

He added that OICA’s role is not only to collect global production and sales figures, but also to interpret the major structural changes reshaping mobility.

“Our task is to understand these shifts clearly, measure them accurately, and help ensure that the future of mobility remains safer, cleaner and smarter,”  added OICA Secretary General François Roudier.

As the industry continues its long-term transformation, OICA said its mission remained clear: to represent the global automotive industry and its member associations at the United Nations, provide a reliable international perspective, and help policymakers and stakeholders better understand where the sector is heading next.

2025 production and sales by continents

Asia consolidates its dominance

Asia was the clear centre of gravity in 2025. Production in the Asia-Pacific region rose 7.6% to around 59.2 million vehicles, accounting for more than 61% of global output. Sales across Asia, Oceania and the Middle East increased from 51.39 million to 55.02 million units (+7.1%), lifting the region’s share of global sales above 55%.

China remained the dominant force, adding roughly 3.25 million vehicles in a single year to reach 34.53 million units produced. New-energy vehicle production reached 16.626 million units, up 29%.

India emerged as the second major growth story, with production rising to 6.49 million vehicles and record domestic sales of over 4.6 million passenger vehicles and more than 1 million trucks and buses in fiscal year 2025–26. Japan remained a key industrial pillar with 8.41 million vehicles produced.

Europe flat

Europe remained broadly flat, illustrating the uneven pace of industrial transition. Production slipped 0.8% to 17.2 million vehicles, while sales edged down 0.4% to 18.63 million. Germany remained the continent’s largest production base, but sharp declines in the United Kingdom and severe production weakness in Italy underscored that Europe’s challenge has become one of difficult and uneven industrial adjustment, not merely soft demand.

Americas diverge

The Americas presented a mixed picture. Regional production declined 2.1% to 18.74 million vehicles, while sales rose 2.9% to 24.86 million. The United States remained a large and resilient market, with 10.24 million vehicles produced and 16.7 million sold, though OICA warned of growing exposure to trade frictions, tariff risks and localisation pressures. Mexico remains central to North American manufacturing, while Brazil stood out as a brighter spot with output reaching 2.64 million vehicles.

Africa rebounds

Africa, though still small in absolute terms, delivered one of the year’s most dynamic performances. Sales jumped 22% from 1.05 million to 1.29 million vehicles, with South Africa and Morocco remaining strategically important industrial hubs.

OICA’s Global Automobile Industry’s Annual Sales Data at the sidelines of the Beijing Motor Show, , said

International Organisation of Motor Vehicle Manufacturers, founded 1919 in Paris, is an international trade association whose members are 39 national automotive industry trade associations.

In 2025, Global Automobile Production of Passenger Vehicles, Trucks and Buses, rose from 92.7 million units in 2024, to 96.4 million units in 2025, with an increase of 3.9%, while Global Vehicle Sales increased, from 95.3 million units in 2024, to 99.8 million units in 2025, posting a growth of 4.7%.

Though there is a growth Globally, but importantly the growth is distributed. Some regions witnessed growth while others declined. Production in Asia-Oceania grew by 7.6%, while Europe and The Americas declined by (-) 0.8% and (-) 2.1%, respectively, in 2025, compared to 2024. Production in Africa was broadly stable with slight decline of (-) 0.3%.”