SunSirs: Global Light Vehicle Sales Increased 6.2% Year-over-year to 7.46 Million Units in July 2025

According to a recent report from LMC Automotive, global light vehicle sales are projected to reach a seasonally adjusted annualized rate of 94 million units by July 2025. Year-over-year, global sales in July increased by over 6% to 7.46 million units.

While trade tensions continue to challenge the global light vehicle market outlook, the US auto market has shown upward momentum amid concerns among automakers, achieving seasonally adjusted annualized sales growth. The Chinese market also maintained growth, driven by favorable pricing conditions and government support measures. While most major auto markets in Western Europe performed poorly, Germany achieved its highest monthly passenger car sales in over a year. Market performance is as follows:

--North America--

US light vehicle sales increased 8.6% year-over-year to 1.4 million units in July. Due to one more selling day in the month compared to the same period last year, sales adjusted for selling days increased 4.6% year-over-year. July's seasonally adjusted annualized sales rate rose to 16.6 million units, up from 15.2 million in June. Automakers are continuing to assess the impact of tariffs, but appear reluctant to significantly raise prices ahead of competitors. This resulted in a 2.0% month-over-month decrease in the average transaction price of new vehicles to $45,134 in July. The average sales incentive increased by $334 to $3,112, contributing to the month's exceptional sales performance.

Preliminary figures indicate that Canadian light vehicle sales in July increased 1.3% year-over-year to 159,000 units, but the seasonally adjusted annualized rate fell to 1.71 million units from 1.91 million in June. While the Canadian market has shown remarkable resilience amidst economic uncertainty in recent months, the month's seasonally adjusted annualized sales decline is unsurprising. Mexico's July sales are expected to increase by 4.0% year-over-year to 133,000 units, bringing the seasonally adjusted annualized rate to 1.62 million units, up from 1.58 million units in June. Trade tensions have so far had no significant impact on the auto market.

--Europe--

Western European light vehicle sales reached nearly 1.1 million units in July, a year-over-year increase of nearly 4%, but the seasonally adjusted annualized rate declined slightly to 13.2 million units. Overall, the outlook for the Western European light vehicle market remains challenging this year, with cumulative sales from January to July down approximately 2% year-over-year. In the passenger car market, Spanish sales continued their strong growth, achieving double-digit year-over-year growth, while German sales reached their highest level since April 2024. In contrast, passenger car sales declined in France, Italy, and the UK, with the French market experiencing year-over-year declines every month since 2025. Eastern European light vehicle sales are expected to reach a seasonally adjusted annualized rate of 4.5 million units in July, essentially unchanged from June, with sales increasing by over 2% year-on-year. In Russia, the region's key market, light vehicle sales fell 13% year-on-year in July, but saw a 13% month-on-month seasonally adjusted annualized rate of 1.28 million units. Light vehicle demand in the country remains generally weak due to the Russian Central Bank's high interest rate policy, which has limited consumer credit growth and auto loan issuance. Passenger car sales in Turkey increased 15% year-on-year to 84,000 units in July, marking the fifth consecutive month of year-on-year growth. Electric vehicle incentives, an influx of Chinese imports, and high inflation all contributed to the continued boost.

--China--

Light vehicle sales in China reached nearly 2 million units in July, a year-on-year increase of 9.2%. The seasonally adjusted annualized rate for the month dipped slightly below 30 million units per year, but market growth has yet to show any significant signs of slowing. The government's trade-in subsidies continue to fuel market growth, while price discounts offered by domestic automakers in a price war further stimulated demand. However, following government intervention, discounts by automakers showed signs of easing for the first time in July, with the number of models offering discounts decreasing.

To gain market share in the fiercely competitive auto market, domestic automakers have implemented price cuts. To curb this trend, relevant government departments have intervened and held talks with executives from major automakers, including BYD, demanding that these companies refrain from offering unreasonable discounts. Growing demand for affordable new energy vehicles (NEVs) in both domestic and overseas markets has made the NEV market a key battleground for price wars.

-- Asia--

Japan's light vehicle sales fell 3.6% year-on-year in July, with light commercial vehicle sales falling 8.1%. Seasonally adjusted annualized light vehicle sales in the country rose 1.7% month-over-month to 4.5 million units in July, so the year-on-year decline is somewhat expected given seasonal factors. While the Japanese market's recovery has been slower than expected due to supply-side issues, this month's seasonally adjusted annualized sales growth has provided some optimism. However, the outlook for the country remains grim for the remainder of the year.

South Korean light vehicle sales grew 6.4% year-on-year in July, driven by the passenger car market. Passenger car sales increased nearly 8% year-on-year in the month, while light commercial vehicle sales declined. New vehicle launches from automakers such as Hyundai and Kia supported sales in South Korea, but the real driver of growth was imported passenger cars. Estimates indicate a 7% decline in South Korean seasonally adjusted annualized sales in July, while cumulative light vehicle sales from January to July maintained positive growth, increasing by 4% year-on-year.

--South America--

Preliminary data indicates that Brazilian light vehicle sales rose 1% year-on-year to 230,000 units in July. Seasonally adjusted annualized sales for the month reached 2.54 million units, a slight increase from June. Although the Brazilian market has emerged from its COVID-19 slump, sales continue to face significant headwinds due to high interest rates and growing uncertainty stemming from trade tensions with the United States.

In July, Argentina's light vehicle market delivered another strong performance, with sales increasing 45.8% year-on-year to 59,000 units. Seasonally adjusted annualized sales for the month surged from 600,000 units in June to 675,000 units, nearly matching April's nearly seven-year high. Tax cuts and a significant increase in the supply of imported vehicles continued to boost sales.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.