European car producers navigate problems to remain on track
Global car markets showed positive trends in 2025, according to figures published by the European Automobile Manufacturers Association (ACEA).
Worldwide registrations rose 3.5% to 77.6 million units, driven by a 5.5% increase in China, supported by scrappage incentives and new energy vehicle policies.
North America recorded modest growth of 1%, reflecting an uncertain and volatile economic environment.
After a subdued start to the year, Europe recorded an increase in its overall registrations of 1.4%.
Germany produced 21% of cars sold in the EU, followed by Spain, Czechia, France and Slovakia. Together, EU-based manufacturers supplied 73% of Europe's cars.
Global car production grew by 4.2% to 78.7 million. Asia continued to dominate, accounting for 62.1% of total output, while the EU contributed 14.6%. European production remained relatively stable, hindered by persistently high energy costs and the impact of tariffs. In contrast, China’s output grew 10.4% on the back of strong policy support and expanding export volumes.
Despite the challenges, a third of European cars were sold outside the bloc. The UK, US and Turkey remained leading destinations, however, sales of EU-made cars in China continued to decline amid intensifying local competition.
In terms of macroeconomics, the EU is forecast to maintain a growth pace of 1.4% in 2026, with activity edging up to 1.5% in 2027. However, escalating Middle East tensions pose a clear risk to the overall macroeconomic projections, with potential spillovers affecting trade, energy prices, inflation and growth, said ACEA.
