In February, the Global Light Vehicle (LV) selling rate stood at 87 million units/year, weaker than the January result. Market volumes improved over 8% YoY though, with 6.6 million units sold.
The key markets of the US, China, and Western Europe experienced mixed results in February 2025. The US saw a decline in sales, partly due to one fewer selling day in the month. Meanwhile, Western Europe continued to struggle with economic uncertainty, dampening consumer demand. In contrast, China recorded a surge in sales, largely driven by seasonal distortions linked to the Lunar New Year holiday.
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See also: Global automotive market forecasts for 2025
North America
US Light Vehicle sales totaled 1.23 million units in February 2025, declining by 1.8% YoY. However, there was one fewer selling day, as compared to February 2024, which may have been a factor in the slowdown in sales. The annualized selling rate increased in February to 16.4 million units/year, up from 15.7 million units/year reported in January, but the January rate may have been disproportionately disrupted by seasonal factors. Average transaction prices slightly eased to US$45,105 in February, down by US$269 MoM, but still up by US$557 YoY. With OEMs facing uncertainty over possible tariffs, incentives remained unchanged in February at US$3,160.
In Canada, sales totaled 115k units in February 2025, slowing by 4.9% YoY. The selling rate reached 1.91 million units/year in February 2025, down from the 2.02 million units/year recorded in January. Consumers could be taking a step back from the market due to the uncertainty regarding the impact of tariffs. Mexican LV sales reached 122k units in February, expanding by 7.1% YoY, as the market continued to demonstrate resilience despite the uncertain economic landscape. The selling rate jumped to 1.64 million units/year in February, up from the 1.55 million units/year recorded in January.
Europe
The LV selling rate for Western Europe grew to 14.3 million units/year in February. In YoY terms, market volumes fell over 4% from last February’s result as sales totaled 975k units. The broader Western European economy has seen stagnant growth which has dampened vehicle demand over the last year. In addition to this, a wide array of geopolitical headwinds, and ongoing high vehicle pricing, are hindering sales. While monetary easing should be supportive, the speed of rates cuts is increasingly unclear in the presence of tariffs and their inflationary effects.
The LV selling rate for Eastern Europe fell to 4.9 million units/year in February. 311k units were sold, a notable decline of 11% YoY. This contraction is due to strong declines in the Russian and Turkish LV markets. In Russia, luxury vehicle (LV) sales experienced a 12% YoY decline. This downturn can be attributed to increased import costs stemming from the new vehicle recycling fees implemented in January 2025. In Turkey, the market is showing signs of deceleration from a high base, primarily due to declining real wages that are affecting consumer spending.
China
The Chinese domestic market slowed markedly for the second consecutive month. Based on advance data, the holiday-adjusted February selling rate is estimated to be 21.1 million units/year, down 13% from January. In YoY terms, however, sales (i.e., wholesales) expanded by 36% in February and 12% year-to-date, due to distortions caused by the timing of the Lunar New Year holiday. The central government announced the extension of the scrapping subsidy program on 8 January, but reportedly many provincial governments were unable to enforce it even in February. That made consumers to hold off on purchases, especially for NEVs, which benefit the most from the subsidies. As a result, days’ supply at dealerships increased to an average of 48 days in February from 42 days in January, according to the China Automobile Dealers Association.
While the market decelerated, it should be noted that sales in Q1 are always volatile and not a good indicator for the rest of the year. This year, the two major government incentives (i.e., the scrapping subsidies and the purchase tax exemptions on NEVs, both of which will expire at the end of 2025) are expected to continue to bolster sales. Intensifying competitions among NEV makers are spurring consumer interest as well, with BYD now offering advanced driving-assistance systems without extra charge and Xiaomi (the world’s third-largest smartphone maker) advancing fast with its smart EV. On the other hand, a weak job market, slowing wage growth, and mounting trade tensions with the US are depressing consumer confidence.
In Japan, sales increased YoY by double digits for the second month in a row in February, due to the scandal-hit depressed sales a year ago. Now that production has normalized, Daihatsu (which was hit the hardest by the scandal) quadrupled its sales, while Toyota registered a 32% YoY increase. However, the selling rate slowed to 4.35 million units/year, down 12% from January. The concern has now shifted from supply to demand, as consumers’ purchasing power is increasingly squeezed by the rising cost of living, a persistently weak yen, and falling real wages. Moreover, bucking the global trend of interest rate cuts, the Bank of Japan has begun to raise interest rates, adding to consumers’ woes.
The Korean market improved for the second consecutive month after being hit by President Yoon’s aborted martial law in December. The February selling rate picked up to 1.66 million units/year, close to the pre-political crisis rate of 1.7 million units/year. After the initial shock from the martial law, the stock market has regained the lost ground and the won has stabilized. Korea’s resilient consumers appear to be already used to the ongoing political turmoil. Nonetheless, political uncertainty and growing global trade tensions remain the major risks to the economy and new vehicle sales. The Bank of Korea has cut its benchmark interest rate again to the lowest level in almost 2.5 years to support the economy.
South America
Brazilian Light Vehicle sales totaled 173.4k units in February, growing by 11.8% YoY. The strong expansion in sales on a YoY basis pushed the selling rate to 2.4 million units/year in February, up from the 2.1 million units/year reported in January. Carnival week can cause sales activity to slow, but whereas Carnival fell in February last year, it was in March in 2025, hence providing a low base effect for February sales.
In Argentina, the market continued its strong pace during the second month of 2025 as sales reached 40.4k units in February, up by 71.1% YoY. The selling rate experienced a bump in February, leaping to 562.1k units/year, up from 515.1k units/year in January. The Argentinian government cut taxes impacting certain vehicles at the end of January, and it seems likely that elimination of these taxes may have contributed to strong LV sales.
This article was first published on GlobalData’s dedicated research platform, the Automotive Intelligence Center.
