Automotive Industry Outlook 2025

Eight key trends empowering automotive companies to navigate industry disruption with decisive transformation and competitive advantage.

Strategic Inflection Point: Navigating the Cycle's Critical Juncture

As we enter 2025, the automotive industry—synced with human history for nearly 150 years—is undergoing profound transformations.

Looking back at 2024, the global auto market navigated waves of disruption and competition. In China, the intensifying price war in the NEV sector drove automakers to seek international expansion. In Europe, subsidy reductions triggered a sharp sales decline, prompting the EU to erect tariff barriers that heightened trade tensions. Meanwhile, in the U.S., the Inflation Reduction Act injected substantial subsidies into domestic EV makers, reinforcing protectionist policies that sparked strong global reactions.

Yet, the NEV sector has demonstrated remarkable resilience and sustained momentum. Production and sales continue to grow worldwide, with electrification and intelligence shaping the industry's trajectory. In China, NEV penetration surpassed that of traditional fuel vehicles in a single month for the first time, solidifying its leadership in the global market.

2025 marks the final year of China’s 14th Five-Year Plan and the closing chapter of this growth cycle for the NEV industry.

This year, automakers must navigate deep waters: innovation cannot stagnate, value systems must be redefined, and localized supply chains must integrate with global strategies.
This year, bold exploration remains imperative: vehicle forms are evolving, manufacturing paradigms are shifting, and market structures are being reshaped.

Through a strategic lens, Premier examines eight key industry trends for 2025, paired with a retrospective of 2024’s pivotal developments. In a decisive moment for the industry, we provide insights to help automakers refine their strategies, win the critical battle, and seize the future.