Global car production increased by 4.2% year-on-year in 2025 to 78.7 million units, with Asia further strengthening its dominance and accounting for 62.1% of total output, Kallanish learns from the European automobile manufacturers association Acea.
China remained the main growth driver, with production rising by 10.4% supported by government incentives and strong export performance. India recorded solid growth, while production in South Korea and Indonesia declined. In contrast, European production remained broadly stable, with EU output rising only 0.3% to just under 11.5m units, as high energy costs and tariffs continued to weigh on the region’s automotive industry.
| Region, country | 2025 | % share | 2024 | % change |
| EUROPE | 14,377,017 | 18.3 | 14,419,136 | -0.3 |
|---|---|---|---|---|
| European Union | 11,470,235 | 14.6 | 11,440,621 | +0.3 |
| Türkiye | 912,012 | 1.2 | 934,616 | -2.4 |
| United Kingdom | 713,079 | 0.9 | 778,385 | -8.4 |
| Russia | 673,367 | 0.9 | 756,130 | -10.9 |
| Ukraine | 1,157 | 0.0 | 1,562 | -25.9 |
| Others (Europe) | 607,167 | 0.8 | 507,822 | +19.6 |
| NORTH AMERICA | 11,238,689 | 14.3 | 11,335,523 | -0.9 |
| United States only | 7,338,071 | 9.3 | 7,371,426 | -0.5 |
| SOUTH AMERICA | 2,232,041 | 2.8 | 2,163,809 | +3.2 |
| Brazil only | 1,990,031 | 2.5 | 1,894,966 | +5.0 |
| ASIA | 48,870,175 | 62.1 | 45,681,519 | +7.0 |
| China | 29,426,897 | 37.4 | 26,664,393 | +10.4 |
| Japan | 7,188,563 | 9.1 | 7,123,421 | +0.9 |
| India | 5,334,547 | 6.8 | 4,913,084 | +8.6 |
| South Korea | 3,772,407 | 4.8 | 3,819,043 | -1.2 |
| Indonesia | 945,591 | 1.2 | 1,007,489 | -6.1 |
| Thailand | 729,666 | 0.9 | 703,474 | +3.7 |
| Others (Asia) | 1,472,504 | 1.9 | 1,450,615 | +1.5 |
| MIDDLE EAST/AFRICA | 1,944,004 | 2.5 | 1,894,249 | +2.6 |
| Iran | 1,058,442 | 1.3 | 1,007,065 | +5.1 |
| Morocco | 477,391 | 0.6 | 508,705 | -6.2 |
| Others (Middle East/Africa) | 408,171 | 0.5 | 378,479 | +7.8 |
| WORLD | 78,661,926 | 100.0 | 75,494,236 | +4.2 |
Compiled by Kallanish based on Acea report
Within the EU, production remained highly concentrated. Germany accounted for 35.2% of total EU car production in 2025 with 4.03m units, followed by Spain at 15.4% with 1.77m units, Czechia at 12.6% with 1.44m units, Slovakia at 9.4% with 1.07m units and France at 8.6% with 986,275 units. Among the main producers, France and Slovakia recorded the strongest growth, while Italy posted the steepest decline, down 22.9% on-year.
| Country | 2025 | % share | 2024 | % change |
| Germany | 4,032,756 | 35.2 | 3,941,457 | +2.3 |
| Spain | 1,766,325 | 15.4 | 1,872,580 | -5.7 |
| Czechia | 1,440,985 | 12.6 | 1,448,908 | -0.5 |
| Slovakia | 1,073,050 | 9.4 | 993,088 | +8.1 |
| France | 986,275 | 8.6 | 854,254 | +15.5 |
| Romania | 452,255 | 3.9 | 475,808 | -5.0 |
| Hungary | 411,943 | 3.6 | 436,273 | -5.6 |
| Sweden | 247,972 | 2.2 | 284,301 | -12.8 |
| Portugal | 240,400 | 2.1 | 236,023 | +1.9 |
| Italy | 237,975 | 2.1 | 308,822 | -22.9 |
| EUROPEAN UNION | 11,470,235 | 100.0 | 11,440,621 | +0.3 |
Compiled by Kallanish based on Acea report
The structure of cars sold in the EU remained concentrated around European production hubs. Germany accounted for 21% of EU car sales by production origin, followed by Spain at 13%, Czechia at 9%, France at 8% and Slovakia at 5%. Altogether, EU-based manufacturers supplied 73% of the EU market. At the same time, Chinese-made cars increased their share of EU sales to 7%, while Türkiye accounted for 5% and Morocco for 4%, underscoring the growing role of non-EU suppliers.
The EU automotive sector remained export-oriented, with more than one-third of EU-made cars sold outside the bloc. The UK, US and Türkiye were the main export destinations. However, external demand weakened in 2025, particularly in China, where sales of EU-made cars declined sharply amid intensifying competition from domestic manufacturers.
EU car trade performance showed mixed trends. In value terms, both imports and exports declined, by 3.2% and 6.2% respectively, reducing the EU’s trade surplus to €76 billion, the lowest level since 2021. In volume terms, however, imports increased by 3.4% to almost 3.6m units, while exports fell by 4.3% to around 4.5m units, indicating weakening external demand combined with rising import penetration.
China remained the EU’s largest external supplier of cars, with import volumes rising by 30.7% to more than 1m units. Türkiye ranked as the second-largest supplier, accounting for 566,823 units, followed by Japan, Morocco and South Korea. On the export side, the UK remained the largest market for EU-made cars, while exports to Türkiye increased significantly and shipments to the US declined due to tariffs. Exports to China dropped sharply, reflecting growing competition from Chinese domestic brands.
Europe’s commercial vehicle sector had a difficult year. Van and truck registrations declined, reflecting a normalisation toward long-term trends as well as ongoing challenges related to fleet renewal and the transition to zero-emission vehicles. Production trends varied by segment: global van production increased by 2%, while Europe recorded a decline, and EU truck production fell slightly. Bus production, however, rebounded, and segment trade balances diverged, with the van trade surplus halved, the truck surplus narrowing and the bus segment recording a trade deficit.
