For August, the Global Light Vehicle (LV) selling rate was broadly in line with the previous month, at over 94 million units/year. In year-on-year (YoY) terms, the market grew 4% as sales reached 7.2 million units globally. YTD sales currently stand at 59 million units, up 5% from the same period in 2024.
Trade tensions have cooled, and key markets have seen growth in August. Despite one fewer selling day in the US, sales remained robust. In China, sales were strong due to government support; however, there are increasing efforts by the Chinese government to return the market to sustainable pricing. In Western Europe, a solid YoY improvement came off a modest August 2024 base.
North America
US Light Vehicle sales grew by 3.7% YoY in August, to 1.47 million units. With one fewer selling day in August 2025 as compared with August 2024, sales increased by 7.5% YoY on a selling day-adjusted basis. The annualized selling rate accelerated to 16.1 million units/year in August, from 16.6 million units/year in July. The Labor Day weekend was counted in August, but sales were robust throughout the month, rather than only at the close. So far, tariffs are having little effect on pricing or sales, with average transaction prices at US$44,994 in August, down by US$139 MoM, while incentives averaged US$3,093 in August, down by US$19 MoM.
Canadian Light Vehicle sales totaled 156k units in August, according to initial estimates. Volumes declined by 3.3% YoY, and the selling rate slowed slightly, to 1.69 million units/year, from 1.71 million units/year in July. While the Canadian auto market has exceeded expectations for much of this year, consumers appear to be coming under increasing pressure, and sales are starting to show some softness. In Mexico, sales are thought to have expanded by a mere 0.4% YoY in August, at 133k units. Still, the selling rate accelerated to 1.65 million units/year, from 1.62 million units/year in July, with economic indicators such as low unemployment and easing inflation supporting activity.
Europe
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By GlobalDataThe Western European LV market grew 3% YoY as sales reached 780k units in August. The monthly selling rate improved to 14.9 million units/year. The YoY gain, however, comes off an already weak August 2024, leaving the month’s performance relatively modest. Overall, 2025 remains challenging for the sector. YTD sales are down 1.5% at 8.8 million units. Across the region’s five major markets, only Spain delivered a genuinely encouraging result, extending its year‑long streak of strong growth. Elsewhere, the positive monthly YoY results, notably in France, Germany and Italy, could not offset weak YTD performances owing to weak economic backdrops.
In Eastern Europe, the LV selling rate for August was 4.6 million units/year, a marginal increase from July. Sales grew 2.5% YoY. The Russian LV market fell 12% YoY in August, though the monthly selling rate reached the third highest level this year at 1.33 million units/yr (-2% MoM). Structural issues persist, with record high auto loan delinquency rates, oversupplied dealerships, and reduced workweeks at major car factories weighing on growth prospects. The Turkish PV market maintained its robust momentum and grew for a sixth consecutive month in August 2025, as sales totaled 82k units, up 19% YoY.
China
The Chinese PV market expanded over 12% YoY in August, meaning the PV market’s YoY growth has now expanded by double-digit rate for every month this year except January. The aggressive domestic price war and government trade in incentive scheme are continuing to boost sales in the market with the selling rate reaching 27.2 million units for PV alone in August.
However, this price competition will likely begin to slow markedly as the Chinese Government steps up its effort to return the market to more sustainable pricing. Regulation on pricing, inspections on production quality, and monitoring of supplier payment periods are some of the areas that the Chinese administration are beginning to crack down on. The Chinese government has outlined that it intends to continue to strengthen efforts to promote automobile consumption, which should ensure that any bumpy landing for the market from an easing in the price war will be avoided.
The Korea LV market declined by 2.6% YoY in August, bringing sales to 122k for the month. Despite this drop on a raw data basis, the selling rate remains in line with the YTD average. YTD the market has expanded 3% YoY, though the struggling LCV segment has pared back PV strength. On the basis of a weak 2024, we expect this year to return to positive growth, but the market rebound is not as strong as some might have hoped. High household debt and a sheepish market sentiment have prevented the rebound from gaining solid momentum.
The Japan market had another month of weakness as LV sales declined 8.1% YoY, with an 11.4% decline in the CV market. The LV selling rate volume also decreased to its lowest point of the year so far at 4.11 million units/year, with the YTD sales for August just over 3 million units. The weakness comes as the rebound effect from various production disruption wears off, and Japanese consumers struggle with financing constraints. Despite this weakness, the nation avoided auto specific tariffs of 27.5%, with the US, reaching an agreement to lower the rate to 15%, thus avoiding a harder economic impact.
South America
Brazilian Light Vehicle sales totaled 214k units in August, down by 3.9% YoY. However, the month had one selling day fewer than August 2024. The selling rate slowed to 2.44 million units/year in August, from 2.54 million units/year in July. Despite tax cuts to some popular models recently taking effect, the fact that only models with 1.0 litre engines benefit from the reduction appears to have limited its impact.
In Argentina, the market once again recorded robust YoY growth, with sales reaching 51.5k units in August, up by 32.4% YoY. However, this was a smaller YoY gain than has been typical in recent months, and the selling rate slowed to 555k units/year in August, from a red-hot 682k units/year in July. This could indicate that the boost from the lifting of import restrictions, alongside tax reductions, is starting to fade slightly.
This article was first published on GlobalData’s dedicated research platform, the Automotive Intelligence Center.
