According to the latest report released by LMC Automotive, the global seasonally adjusted annualized sales of light vehicles in March 2025 are expected to be 90 million units per year, an increase from the previous month and higher than the full year sales level of 2024. Despite the gloomy global economic outlook, year-on-year sales increased by 7.1% to 8.53 million vehicles, with a cumulative sales growth of 6% from January to March.

In March, sales in major markets such as the United States, China, and Western Europe all saw growth. However, the protectionist policies of the United States and the uncertainty they bring will have a tangible impact on the global economic landscape this year and in the future. In the US market, due to the upcoming increase in car prices caused by tariffs, sales have been significantly boosted by the early release effect. Thanks to the government's stimulus measures, sales in the Chinese market are expected to remain stable. The performance of each market is as follows:

--North America--

In March, the sales of light vehicles in the United States increased by 11.2% year-on-year to 1.61 million units. The sales days of the month were one day less than the same period last year, so the year-on-year sales growth rate adjusted based on sales days was 15.5%. The seasonally adjusted annualized sales in March increased from 16.3 million vehicles per year in February to 17.8 million vehicles per year, reaching the highest level since April 2021. Due to consumers attempting to purchase cars before the tariffs led to price increases, sales in March were significantly boosted by the early release effect. The average transaction price of new cars in March was $44,789, a decrease of $316 compared to the previous month, but an increase of $577 compared to the same period last year. The sales bonus for the month decreased from $3,162 in February to $3,068.

Canada's sales in March surged 15.4% year-on-year to 183,000 vehicles, while seasonally adjusted annualized sales increased from 1.97 million vehicles/year in February to 2.05 million vehicles/year. Although the country's recent sales performance has been steady, this may be due to the fear of tariffs prompting consumers to make car purchases in advance. In March, the sales of light vehicles in Mexico increased by 5.8% year-on-year to 132,000 units, setting a record for the highest March sales since 2017. Although the seasonally adjusted annualized sales volume of the country in March slightly decreased from 1.64 million vehicles/year in February to 1.6 million vehicles/year, it is still a very ideal result.

--Europe--

In March, the seasonally adjusted annualized sales of light vehicles in the Western European market fell to 12.6 million units per year, while sales remained basically the same as the same period last year. US President Trump has imposed tariffs on imported cars and widely imposed tariffs on all trading partners, deepening concerns about a global trade war. Due to the heavy reliance of many Western European countries on the United States for a large portion of their exports, the current situation poses significant challenges for Western European countries and may have serious negative impacts.

The seasonally adjusted annualized sales of light vehicles in the Eastern European market in March decreased by over 18% compared to February, with sales declining by over 10% year-on-year for two consecutive months. The sharp decline in sales in Russia that month, with a year-on-year decrease of 40%, cast a shadow over the sales prospects of Eastern Europe in 2025. This decline also marks the largest drop in monthly sales in Russia since the beginning of 2022, influenced by factors such as the increase in car recycling fees leading to a decrease in the number of cars imported from China, prolonged inflation, credit tightening, increased pressure on localized production, and delayed consumer demand due to the bleak prospects for peace.

--China--

In March, the wholesale sales of passenger cars in the Chinese market reached 2.4 million units, setting a record for the highest sales volume in March and increasing by 11% year-on-year. The cumulative sales of passenger cars from January to March increased by 12% year-on-year, reaching 6 million units. The rebound in retail sales provided support for March sales.

The Chinese government has increased the intensity of market stimulus measures this year. For example, the government has increased the amount of subsidies for car trade ins and scrapping, mainly aimed at promoting sales of new energy vehicles, and has also relaxed restrictions on car purchases. Domestic car companies have engaged in fierce price competition, with new car models emerging one after another, and local car markets have also responded to this situation. In the context of weak domestic economic growth, the government is seeking to offset the impact of recent US import tariffs by stimulating domestic demand and increasing demand for Chinese products in other regions.

--Other regions in Asia--

In March, Japan's sales achieved double-digit year-on-year growth for the third consecutive month. The reason for such strong market performance is that last year's vehicle certification scandal had a negative impact on automobile production and sales, resulting in a lower year-on-year base. However, the seasonally adjusted annualized sales in March continued the downward trend compared to the previous month, dropping to 3.8 million vehicles per year, a decrease of 24% from January. Part of the reason for the significant decline in seasonally adjusted annualized sales can be attributed to an accident at a factory owned by Chuo Spring, a major supplier to Toyota, Daihatsu, and Suzuki, which resulted in a disruption of vehicle supply.

The South Korean light vehicle market is showing an upward trend, with seasonally adjusted annualized sales increasing month by month since the beginning of the year. The cumulative sales of light vehicles from January to March increased by 2.5% year-on-year, but this was due to a lower base from the previous year. Both domestic and imported car sales have achieved year-on-year growth. Despite the overall positive trend in light vehicle sales, the light commercial vehicle market is in decline due to factors such as aging vehicle models and economic challenges.

--South America--

In March, Brazil's light vehicle sales increased by 4.6% year-on-year to 184,000 units. When adjusting for the menstrual season, the annualized sales slightly decreased from 2.43 million units/year in February to 2.41 million units/year. Considering that last year's carnival was in February and this year's is in March, resulting in two fewer sales days in March compared to the same period last year, this sales performance highlights its value. Despite concerns about inflation and interest rates, the overall market remains healthy.

In March, the Argentine market continued to experience a surge, with light vehicle sales increasing by 82.7% year-on-year to 44,700 units. The seasonally adjusted annualized sales for the month slightly slowed down, dropping from the highest level of 562,000 vehicles per year in over six years in February to 503,000 vehicles per year. With the recent tax reduction policies for multiple car models and an increase in imported car supply, the country's market has achieved seasonal adjusted annualized sales exceeding 500,000 vehicles per year for three consecutive months since the fourth quarter of 2018.

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