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.
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.