According to a recent report from LMC Automotive, global light vehicle sales are projected to reach a seasonally adjusted annualized rate of just over 94 million units in August 2025, essentially unchanged from the previous month. Year-over-year, global sales increased 4.1% to 7.2 million units in August, while cumulative sales for the January-August period rose 5% to 59 million units.

August saw sales growth in all major global markets due to easing trade tensions. Despite one fewer selling day than the same period last year, sales in the US remained robust. China saw strong sales, benefiting from supportive government policies, but the government is increasing its efforts to return the market to sustainable pricing. Western European sales saw a significant improvement from the tepid performance of the same period last year. Market performance is as follows:

North America

US light vehicle sales increased 3.7% year-over-year to 1.47 million units in August. Due to one fewer selling day in August compared to the same period last year, sales, adjusted for the number of selling days, increased 7.5% year-over-year. August's seasonally adjusted annualized sales rate fell to 16.1 million units from 16.6 million in July. Although the Labor Day weekend fell late in August, the strong sales performance persisted throughout the month, not just at the end of the month. So far, tariffs have had little impact on vehicle prices or sales. The average transaction price for a new vehicle fell $139 month-over-month to $44,994, while the average sales incentive decreased $19 month-over-month to $3,093.

Flash data shows that Canadian light vehicle sales fell 3.3% year-over-year to 156,000 units in August, with the seasonally adjusted annualized rate also falling slightly to 1.69 million units from 1.71 million in July. While the Canadian auto market has outperformed expectations for most of the year, consumers appear to be feeling increasing pressure, and sales are beginning to show signs of softening. Mexico's August sales are expected to rise by just 0.4% year-on-year to 133,000 units, but seasonally adjusted annualized sales continue to rise, reaching 1.65 million units per year from 1.62 million in July. Economic indicators such as low unemployment and easing inflation are supporting auto sales in the country.

Europe

Western European light vehicle sales rose 3% year-on-year to 780,000 units in August, bringing the seasonally adjusted annualized rate to 14.9 million units. However, this year-on-year increase reflects a market that was already sluggish in the same period last year, making this month's sales performance less than impressive. Overall, the outlook for the Western European light vehicle market remains grim this year, with cumulative sales from January to August down 1.5% year-on-year to 8.8 million units. Among the region's five major markets, only Spain offered truly encouraging results, continuing its strong year-long sales growth. In other markets, while sales in France, Germany, and Italy saw year-on-year growth, this was insufficient to offset the negative impact of their weak cumulative sales from January to August due to economic weakness.

Eastern European light vehicle sales reached a seasonally adjusted annualized rate of 4.6 million units in August, a slight increase from July and a 2.5% year-on-year increase for the month. Russian light vehicle sales fell 12% year-on-year in August, but the country's seasonally adjusted annualized sales reached 1.33 million units (down 2% month-on-month), the third highest level of the year. Continued structural issues, including record-high auto loan delinquency rates, oversupply facing dealers, and reduced workweeks at major assembly plants, have clouded the Russian market's growth outlook. Turkey's passenger car market maintained its strong performance in August, with sales increasing 19% year-on-year to 82,000 units, marking the sixth consecutive month of year-on-year growth.

China

China's passenger car sales increased by over 12% year-on-year in August, marking the sixth consecutive month of double-digit year-on-year growth in passenger car sales with the exception of January. Fierce price competition in the domestic market and government trade-in incentives continue to boost sales, with passenger car sales alone reaching a seasonally adjusted annualized rate of 27.2 million units in August.

However, as the Chinese government steps up efforts to guide the market back to more sustainable pricing, the price war is expected to cool significantly. The government has already implemented measures such as pricing controls, production quality inspections, and supplier payment monitoring. Furthermore, the Chinese government has stated that it plans to continue strengthening efforts to promote auto consumption to ensure that the easing of the price war does not cause any bumps in the market's landing.

Rest of Asia

South Korean light vehicle sales fell 2.6% year-on-year to 122,000 units in August. Despite the decline, the country's seasonally adjusted annualized sales for the month remained in line with the year-to-date average. South Korea's light vehicle sales for the first eight months of this year increased 3% year-on-year, but the sluggish light commercial vehicle market mitigated the positive impact of the strong performance of the passenger car market. Given the low base in 2024, the agency expects South Korean light vehicle sales to return to positive growth this year, but the market rebound will not be as significant as some had hoped. High household debt and subdued market sentiment are hindering a robust recovery.

The Japanese market continued its sluggish performance in August, with light vehicle sales falling 8.1% year-on-year, including an 11.4% year-on-year drop for light commercial vehicles. Seasonally adjusted annualized light vehicle sales reached 4.11 million units in August, the lowest level year-to-date, and cumulative sales from January to August were just over 3 million units. The market downturn stems from the fading rebound from previous production halts at several automakers and consumers struggling with financial constraints. Despite the current market weakness, Japan avoided a 27.5% US auto tariff. The two countries reached an agreement to reduce the tariff to 15%, sparing the Japanese economy from a more severe impact.

South America

Light vehicle sales in Brazil fell 3.9% year-over-year to 214,000 units in August, despite one fewer selling day in the month compared to the same period last year. The seasonally adjusted annualized sales for the month fell to 2.44 million units from 2.54 million units in July. While tax cuts for some popular models recently took effect, their effectiveness may have been limited by the fact that they only apply to vehicles with 1.0L engines.

Argentina's light vehicle market saw another period of solid growth in August, with sales increasing 32.4% year-over-year to 51,500 units. However, this growth rate has narrowed compared to recent months. The seasonally adjusted annualized sales for the month fell to 555,000 units from the exceptionally strong 682,000 units in July. This may indicate that the boost from the removal of import restrictions and tax cuts is beginning to fade.

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