GLOBAL car sales in the first half of 2025 recorded growth compared to the same period last year. An analysis of 34 leading automotive companies shows that 37.6 million vehicles were sold, representing an increase of 3 percent. The largest contributors to this growth were Toyota, BYD and Geely, which managed to offset the decline in sales at Stellantis and Tesla.
However, despite the higher number of cars sold, the financial results reveal a worrying trend. The industry’s total revenues fell by 2 percent, leading to a drop in the average price per vehicle sold from €35,199.39 to €33,354.09.
Although most Chinese manufacturers are not included in this analysis, the ongoing price war in the Chinese market largely explains the decline in average prices. For example, BYD and Geely increased sales by an impressive 33 percent and 47 percent, respectively, but BYD’s revenue grew much more slowly, by only 14 percent, while Geely’s revenue stagnated. It is also noteworthy that BYD positioned itself as the world’s sixth largest automaker by sales volume in the first half of 2025.
Sharp decline in profitability
An even bigger cause for concern in the sector is the drastic decline in profitability. A combination of adverse factors – from a price war in China and stagnant global demand to rising costs in Europe, trade disruptions and uncertainty over tariffs imposed by US President Donald Trump – has hit the industry hard. Operating profit fell by as much as 23 percent, to €112,956.19. Among the largest manufacturers, the most pronounced declines were recorded by Stellantis and Nissan, followed by Mercedes, Ford, Tesla, Volkswagen, BMW, Honda and Kia.
Uncertain future of the industry
The decline in net profit is even more dramatic – it collapsed by a staggering 69 percent to just €24,588.00 compared to the same period in 2024. Consequently, the average net margin fell from 6.1 percent to just 2.0 percent in a year. This sharp decline reflects the general climate of uncertainty affecting both Western and Chinese manufacturers. Without more flexible regulation in Europe, clearer trade policies in the US and an end to the price war in China, the future of the sector remains very uncertain.
Few have managed to increase profits
However, in this environment, only three manufacturers managed to increase their net profit: Suzuki (+9%), Ferrari (+9%) and BYD (+2%). When looking at net margin, Ferrari is the absolute winner with 23.4 percent. It is followed by Suzuki with 9.1 percent, Kia with 8.1 percent, Hyundai with 7.2 percent and China’s GWM with 6.9 percent. Ferrari also dominates in terms of profit per car sold, with an incredible €128,277.94. Far behind it are Jaguar Land Rover (€5,566.77), Porsche (€5,326.00), Mercedes (€2,711.28) and BMW (€2,203.83), while the industry average is only €652.48 per vehicle.
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