Fitch Ratings Forecasts Moderate Growth in Global Automotive Sector

Fitch Ratings has projected a 2% increase in light vehicle sales for the global automotive sector in 2025, maintaining a "neutral" outlook. While growth is anticipated in certain regions, the industry is expected to face uneven gains due to macroeconomic pressures in Europe and China.

Competitive pricing and protectionist policies are likely to strain profitability further. The agency highlighted potential challenges for manufacturing and supply chains in Mexico and Canada under a potential second term of Donald Trump's presidency.

Electric vehicle (EV) sales are expected to remain flat in the US and Europe, primarily due to concerns over range and residual value depreciation. In contrast, the Chinese market is likely to see continued growth in EV sales.