For July, the Global Light Vehicle (LV) selling rate improved to 94 million units/year. In year-on-year (YoY) terms, the market grew over 6% as sales reached 7.4 million units globally.
Despite trade tensions continuing to challenge the global outlook, the auto market accelerated in the US with a stronger selling rate despite OEM concerns. China also maintained its momentum amid favorable price conditions and government support. Western Europe faced a weaker month across most major markets, though Germany saw its strongest PV market in over a year.
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North America
US Light Vehicle sales grew by 8.6% YoY in July, to 1.40 million units. There was one extra selling day in July 2025 as compared with July 2024, meaning that sales increased by 4.6% YoY on a selling day-adjusted basis. The annualized selling rate accelerated to 16.6 million units/year in July, from 15.2 million units/year in June. As OEMs continue to assess tariff impacts, and seem to be unwilling to hike prices significantly ahead of their rivals, average transaction prices fell in July, to US$45,134, down by 2.0% MoM. Average incentives rose by US$334 MoM, to US$3,112, enabling the remarkably strong July result.
Canadian Light Vehicle sales totalled 159k units in July, according to initial estimates. This represented a YoY gain of 1.3%, but the selling rate slowed to 1.71million units/year in July, from 1.91 million units/year in June. The Canadian market has shown a good deal of resilience in the face of economic uncertainty over recent months, but it was not surprising to see the selling rate decline in July. In Mexico, sales were estimated at 133k units in July, up by 4.0% YoY. The selling rate picked up to 1.62 million units/year in July, from 1.58 million units/year in June. So far, there has been little discernible impact on the auto market from trade tensions.
Europe
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By GlobalDataThe Western European LV market improved nearly 4% YoY as sales neared 1.1 million units last month. The selling rate eased slightly to 13.2 million units/year. Overall, 2025 continues to be a tough year for the market, so far, YTD sales are down around 2%. Focusing on the PV market, Spain continued its strong run of growth as sales were up double digits YoY, while Germany also saw its best result since April 2024. Conversely, France, Italy, and the UK all saw declines — notably the French market which has fallen on a YoY basis in every month of 2025.
In Eastern Europe, the LV selling rate for July is estimated to be 4.5 million units/year, similar to the previous month. Sales grew over 2% YoY. Key market, Russia, declined by 13% YoY in July, with the selling rate standing at 1.28 million units/yr (+13% MoM). Demand remains weak overall though, due to the CBR’s high key rate stalling consumer credit growth and auto financing. The Turkish PV market saw a fifth consecutive month of growth in July 2025 as sales reached 84k units, up 15% YoY as EV incentives, an influx of Chinese models, and high inflation continue to boost sales.
China
In China, the LV sales market expanded 9.2% YoY for July with the topline volume sitting just below 2 million for the month. The monthly selling rate mildly contracted to just below 30 million but momentum shows few signs of weakening to a significant level, for now. The government trade-in subsidies have been fuelling the market momentum, with the domestic OEM’s price war further heating demand through discounted vehicle prices. However, following the Chinese government intervention regarding the price war, the discounting has showed its first signs of easing in July as fewer models have been discounted.
Chinese OEM’s have eroded the market’s pricing in a bid to gain market share in a fiercely competitive modern vehicle market. Chinese officials have stepped in to put an end to this, meeting with heads of the largest OEM’s including BYD, where they instructed manufacturers not to offer unreasonable discounts. The EV market is the main battleground in the price war, as domestic and international demand for affordable electric driving has been rising.
In Japan, LV sales fell 3.6% YoY on a raw sales basis, with the CV segment contracting 8.1%. This is somewhat expected in seasonal terms however, as indicated by the selling rate posting a 1.7% MoM increase for LVs, reaching 4.5 million units/year for July. The Japanese market recovery has been duller than expected due to supply issues, but this month’s selling rate expansion offers some optimism. Nonetheless the outlook remains challenging for the YTG.
In Korea, LV sales expanded 6.4% YoY, with the PV segment leading the gains. PV sales grew nearly 8% YoY, while the LCV segment contracted. The Korean market was supported by several new model releases, including new models from Kia and Hyundai. Imported PV sales were the driver of growth though. The monthly selling rate contracted 7% in July based on the estimated data. The YTD sales remain positive however, with the LV number up 4% YoY.
South America
Brazilian Light Vehicle sales totaled 230k units in July, according to preliminary estimates, representing 1% YoY increase. The selling rate accelerated to 2.54 million units/year in July, fractionally higher than June. While the market has recovered from pandemic-era lows, high interest rates and increasing uncertainty over trade tensions with the US present significant headwinds to sales.
The Argentine LV market delivered another impressive month in July, as sales reached 59.0k units, up by 45.8% YoY. The selling rate surged to 675k units/year, from just under 600k units/year in June, and virtually matching April’s result, which was an almost seven-year high. Tax reductions and much greater availability of imported models continued to boost sales in July.
This article was first published on GlobalData’s dedicated research platform, the Automotive Intelligence Center.
