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Auto Market 2025: China Dominates, India Grows Fast, EV Boom Led by Vietnam and Thailand

Auto Market 2025: China Dominates, India Grows Fast, EV Boom Led by Vietnam and Thailand
Geely Galaxy M9 PHEV

China continues to dominate the global automotive market in 2025, while India stands out as the fastest-growing major player, expanding by 4.4 percent and securing third place. In contrast, Italy and the United Kingdom recorded the steepest declines among leading markets.

The global ranking is based on cumulative vehicle registrations across more than 150 countries. Total vehicle sales, including cars and light vehicles, reached 88.75 million units in 2025, reflecting a 1.9 percent increase compared to the previous year.

China remained the largest market, growing by 2.1 percent and accounting for 30.4 percent of total global sales. The United States held second place with a 1.6 percent increase, capturing 18.4 percent of the market. India ranked third with a 5.1 percent share, supported by strong growth of 4.4 percent, followed by Japan with a 4.9 percent share and a 3.2 percent rise.

Germany continued as the largest automotive market in Europe, ranking fifth with a 3.2 percent share and a 1.4 percent increase. Brazil moved up to sixth place after growing by 2.7 percent. The United Kingdom dropped to seventh following a 4.8 percent decline, while Canada climbed to eighth with a 2.8 percent increase. Italy fell to ninth with a 2.6 percent contraction, and South Korea rounded out the top ten with a 2.1 percent gain.

Electric vehicle adoption accelerated worldwide, reaching about 17 percent of total vehicle sales in 2025 and growing by 12.3 percent. China remained the dominant force in the EV segment, accounting for around 70 percent of global sales and posting a 9.8 percent increase. In the United States, EV sales declined by 11.8 percent.

Across Europe, performance varied. Germany recorded strong growth of 40.7 percent, and Norway surged by 57.4 percent, while the United Kingdom saw a decline of 11.5 percent. The most notable momentum came from emerging markets, where Vietnam and Thailand became key drivers of EV expansion. Vietnam recorded a surge of 201.7 percent, while Thailand grew by 49.7 percent, highlighting a shift in growth toward Southeast Asia.

Although government incentives per vehicle are declining globally, rapid expansion by Chinese manufacturers and the rise of local competitors continue to push the EV market forward.

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