Major Automotive Global Trends - October 2025

USA

Despite the reduction in EV incentives, the public charging network in the US is expanding swiftly

Uncertainty regarding EV regulation in the US continues to create paradoxes in the EV market. It so happened that, in the same month federal subsidies for EV purchases ceased, the number of public charging stations reached a new record.

According to data published in October by the American Department of Energy, in Q3 of this year, 780 new fast-charging stations were added, setting a new growth rate record since the public charging network was installed. In the first nine months of this year, the overall charging infrastructure in the US expanded by 19%.

Despite pessimism in the auto industry about the expected decline in US EV sales in the coming months, charging industry executives remain optimistic. They note that funding for charging stations has recently reopened after a federal court ordered President Trump to rescind an executive order that had frozen a $5 billion program to build charging stations in rural and underserved communities across the US.

In addition, in June of this year, California succeeded in preventing the federal government from delaying the allocation of billions of dollars in special funds for EV charging facilities, which had been approved by a bipartisan majority in Congress.

US analysts add that the growth rate of the American charging network is extraordinary considering the policies of the current administration. Although many of the construction permits for new charging stations were approved before President Trump took office, they estimate that even with the end of federal subsidies for EVs in the US and the expected subsequent slowdown in EV sales, the supply of public charging services will have difficulty keeping up with demand. This is because the extreme shortage of charging stations has not yet been resolved, and many new EV owners in the US still rely on public charging.

Recent data from the state of California shows that the state currently has about 201,000 public EV charging stations, 68% more than the number of gas pumps in the state. Charging stations are installed in grocery store parking lots, garages, offices, sports stadiums, and gas stations, and are also becoming popular in apartment buildings and office buildings. In addition, there are about 800,000 home charging stations in detached houses in California.

The Trump administration announced it intends to impose a 25% tariff on medium and heavy-duty trucks imported into the US starting from November

In October, President Trump announced his intention to impose a 25% tariff on medium and heavy-duty trucks imported into the US starting November 1st, in order to “Protect domestic industries.”

The move was originally scheduled to take effect in October, but was delayed to allow for a hearing for industry stakeholders who would be affected by the tariffs. Trump’s announcement followed a study of the heavy-duty truck market imported into the US conducted by the Department of Commerce in April of this year under Section 232 of the Trade Expansion Act. The section allows for import tariffs on goods “Essential to the national security of the US”.

The study focused on imported trucks and parts, and the department noted that “A small number of foreign suppliers control the majority of the US heavy-duty truck market imported into the US”.

Analysts say the new tariffs will add to the costs of the US trucking industry, which already faces high tariffs on imported steel and aluminum and stricter environmental regulations. The new tariffs on imported trucks could also raise transportation and logistics costs in a variety of industries that rely on land transportation, including food, construction, and municipal services.

Stellantis has already applied to the US government to exempt or reduce tariffs on its heavy-duty RAM trucks, which are manufactured in Mexico and imported from there to the US. However, several competing manufacturers oppose the request, arguing that this would give the company a cost advantage over trucks assembled in the US and containing imported parts, which are subject to tariffs.

Supporters of the tariff claim that it will help boost domestic manufacturing in the US. Trump has stated that the tariff is necessary to “Protect American heavy-duty truck manufacturers from unfair foreign competition,” and his supporters say that “The plan to impose tariffs on imported heavy-duty trucks is a major victory for American workers and American manufacturers… This action will strengthen this critical industry and protect it from unfair foreign competition”.

The US Department of Commerce data show that the US imported about 245,000 medium and heavy-duty trucks in 2024, with the financial volume of direct and indirect imports in the industry exceeding $20 billion.

The new tariffs on trucks are part of a series of sectoral tariffs imposed by the Trump administration, including tariffs on imported steel, aluminum, copper, cars, and auto parts - all of which are already in effect. In addition, new tariffs will be imposed on October 14, and existing tariffs are expected to increase again on January 1, 2026.

The US government is currently conducting additional “Market examinations” on imported solar panels, commercial aircraft, critical minerals, robots, medical equipment, industrial machinery, and more. Specifically, the examination of the industrial robots and industrial machinery market, if it does result in the imposition of tariffs, is expected to particularly hurt the US auto industry, which has a critical dependence on heavy equipment imported from Mexico and China.

Data from the International Federation of Robotics shows that the auto industry is a major consumer of industrial robots, and last year alone, 13,747 new industrial robots were installed in the industry, most of them imported.

US EV sales soar to a new record in Q3 2025

In the third quarter of this year, EV sales in the US reached an all-time high of 438,500 units. This was due to a “Buying panic” by American consumers, who rushed to take advantage of the $7,500 federal subsidies that expired in September.

According to data from the automotive trading company Cox Automotive, the share of EV sales in the third quarter was about 11% of total sales, surpassing the previous record of about 8.7%.

Now, analysts expect EV sales in the US to decline in the coming months. Consensus estimates predict that by the end of the decade, EV market share of total sales will reach 25%, half the previous estimate.

Even in the short term, the outlook for the US EV market looks challenging, with consulting firm S&P Global predicting that EV sales will account for less than 7% of total new vehicle sales in the US in the fourth quarter of this year. At the same time, the market for used EVs in the US is thriving.

Optimists cling to data showing that in the first half of 2025, almost half of American consumers purchased EVs without receiving any federal subsidies for them. In other words, the vehicles were purchased for environmental and economic reasons. Furthermore, new and cheaper electric models are expected to be introduced in the coming months, priced lower than comparable gasoline vehicles.

The US is expected to ease tariffs on the auto industry

After a series of import tariffs that burdened the American auto industry, manufacturers gained some relief during October. According to media reports, the US Department of Commerce plans to announce a five-year extension to regulations that allow automakers to reduce tariffs on imported auto parts. The regulation was originally scheduled to expire in two years.

The move follows months of lobbying by American automakers, aimed at easing the Trump administration's tariffs and lowering production costs in the US.

Previously, automakers could offset some of the 25% tariff on imported parts. Under the rules at the time, automakers that built and sold complete vehicles in the US could apply for an offset of up to 3.75% of the value of the domestically produced vehicles. The offset was to be reduced to about 2.5% after one year and eliminated completely the following year.

Europe

The ACEA submitted a series of proposals to the EU to ease carbon reduction targets for private and commercial vehicles

The European fight over vehicle emissions regulations continues to escalate, with the European Automobile Manufacturers Association increasing pressure on EU institutions. At the same time, green organizations are trying to prevent a complete overhaul of the environmental regulatory framework for vehicles.

In October, the European Automobile Manufacturers Association (ACEA) called on the European Commission to include hybrid and synthetic fuel vehicles in the review of carbon emissions targets, which is due to take place towards the end of the year.

The association has submitted a series of detailed recommendations and proposals to the Commission to ease the CO2 emission reduction targets for cars, vans, and trucks, and to extend the deadlines for meeting them. It demands that the Commission’s review process take into account the heavy pressure currently placed on the European car industry by US tariffs and China’s growing lead in the electric and plug-in vehicle market.

The EU originally planned to set interim targets for 2030 and achieve a 100% (i.e. zero) CO2 emissions from new passenger cars and vans sold from 2035. However, the manufacturers’ association argues that this target is no longer realistic and that carmakers face many risks beyond their control, such as insufficient charging infrastructure and slow market demand for EVs.

According to the association, EVs currently account for only 15.8% of the new car market in Europe, 8.5% of the van market, and only 3.6% of the truck market.

The main proposal is that the reassessment of the EU's vehicle carbon emission reduction targets should be based on average emissions over the five years from 2028 to 2032.

In addition, ACEA is proposing to establish a regulation that would support small EVs to help automakers achieve their overall emissions reduction targets.

Another proposal is that plug-in hybrid vehicles with an extended electric range (EREV) would play a more significant role in reducing emissions and receive incentives similar to those of full EVs.

In addition, the association advocates that vehicles using "Carbon-neutral" fuels, i.e. those produced using "Green" production methods, be given a similar status to EVs. The association also suggests that the EU provide incentives for "Indirect" initiatives to reduce carbon emissions from the automotive sector, such as the use of "Green" steel.

In the van and commercial vehicle sector, the manufacturers' association recommends extending the period for meeting the EU's 2025 carbon emissions target to 2029 and "Moving" the 50% reduction target in emissions from the sector to 2030.

In the truck sector, the association recommends carrying out an early review of the existing emissions reduction targets, originally planned for 2027, and taking urgent steps to prevent fines on manufacturers for not meeting the current targets.

In response, the European Environmental Transport Lobby, which promotes green transportation, said that the manufacturers' recommendations document has many loopholes and claims that if the proposal is implemented, car manufacturers will be required to achieve a market share of only 52% for EVs in 2035 (instead of 100%).

German government to present new 3 billion euros incentives for EVs

In October, the German coalition approved a €3 billion stimulus package for buyers of new zero-emission vehicles by 2029, part of a broader effort to support German carmakers, which are struggling to compete.

The government announced the measures, which are mainly aimed at low- and middle-income families, after consulting with other parties. The measures are intended to help the German car industry, a key sector in Europe's largest economy that is currently facing many challenges. These include growing competition from China and ongoing uncertainty over tariffs on imported vehicles imposed by the US administration.

According to the German finance minister, "The future of the car industry is electric. To ensure that we put many more electric cars on the road in the coming years, we must provide the right incentives now".

The subsidy scheme will officially come into effect on January 1, 2026 for new EVs that cost less than €45,000 and have a weighted average CO2 emissions of less than 50 grams per kilometer (plug-in vehicles are not eligible for the subsidy). The subsidy amount will be up to €4,000 and will be paid to the buyer after the vehicle is registered.

The subsidies are intended primarily for lower- and middle-class families and small businesses, with the upper limit for the total annual income of the buyer eligible for the subsidy being around €45,000, although this figure has not yet been officially confirmed. In addition, according to a plan adopted by the cabinet, the exemption from annual vehicle tax for EVs in Germany will be extended until 2035 instead of until 2030 as originally planned. The exemption period is up to a maximum of 10 years, starting from the date of the extension. This means that someone who registers a new EV in 2025 will be able to take advantage of the exemption for a period of ten years. However, if, for example, an EV is purchased in 2027, it will receive an exemption until 2035 at the most, and so on.

The German Ministry of Finance expects that the cost of the tax benefit in 2026 will be 50 million euros, and the amount will increase in the following years to up to 380 million euros.

France and Germany are mutually calling on the EU not to back down from its plan to ban the selling of ICE cars from 2035

On the eve of a meeting of EU leaders in October, France and Spain issued a joint statement calling on the EU not to back down from its plan to ban the sale of cars with internal combustion engines after 2035. This is a position that is in clear contradiction to the position of the German Chancellor.

The European Commission is currently reviewing the regulations, which are designed to accelerate the transition of the EU car industry to a zero-emission future. In a document presented to a meeting of EU climate ministers in Luxembourg on October 21, France and Spain said they hoped the review process would preserve the 2035 target and also preserve the interim targets for reducing carbon dioxide emissions from transport.

However, the countries also called for allowing “Flexibility” for manufacturers that produce vehicles in Europe, by establishing a preferential accounting mechanism of “Increased credits”, based on the extent of the use of European components in the manufacturers’ vehicles. According to them, “The flexible mechanism is designed to further reduce CO2 emissions from cars in Europe.”

The above statement highlights the attempt by European regulators to balance environmental protection goals with the interests of the automotive industry, which is a major employer in the EU and a source of taxation worth tens of billions of euros a year. On the one hand, the progress of EU car manufacturers towards the set environmental targets is uneven, and on the other hand, they have to compete directly with cheap manufacturers from China.

Norway suggests bringing back taxation on EVs

Norway was a European pioneer in the adoption of EVs, and today, its penetration rate in the country is one of the highest in the world, with about 98% of all new car sales.

One reason for the success was the policy of recent Norwegian governments to grant almost complete exemption from purchase taxes, VAT, and annual taxes on EVs. However, now that market penetration is almost complete, this policy is set to change.

In October, the Norwegian government presented to parliament a plan to abolish the VAT exemption on all EVs in the country, starting in 2027. The cancellation of the incentive is set to increase the price of new electric models by thousands of dollars, including the Tesla Model Y, which is the best-selling model in Norway.

When presenting the proposal to parliament, the Norwegian Minister of Finance said that "Our goal of making all new passenger cars electric by 2025 has been achieved. It is time to gradually stop the benefit policy."

As mentioned, Norway has exempted most EVs from taxes in recent years while imposing a high tax on internal combustion vehicles to accelerate the industry’s transition to EVs. This policy has cost the government billions of dollars in lost tax revenue each year.

Under the current policy, which began in 2023, EVs that cost more than $50,000 pay a 25% VAT. However, according to the 2026 budget proposal, VAT will already apply to vehicles that start at $30,000, and will also include popular models such as the Tesla Model Y. The Norwegian government has announced that if parliament approves the plan, the VAT exemption will be abolished for all EVs starting in 2027.

At the same time, the government has announced that it plans to raise the purchase tax on gasoline vehicles to maintain incentives for preferring EVs.

The proposal is currently facing internal opposition in Norway, with a leading lobby group called the Norwegian Electric Vehicle Association saying that the new government policy is “Hasty” and that the exemption should be reduced over several years. This is partly because gasoline vehicles still account for about 70% of all vehicles in Norway. It is worth noting that Norway's current government is a minority government, and its budget proposal must be managed and agreed upon with the four parties in parliament.

China

The number of vehicles in China has reached 460 million, and the number of drivers has exceeded 550 million, a new record in growth rate

In mid-October, the Chinese Ministry of Public Security held a press conference in Beijing, announcing that as of the end of September 2025, the number of motor vehicles in China had reached 460 million, of which about 360 million were private vehicles. The number of driving license holders is expected to exceed 550 million this year.

This is an increase of about 7 million vehicles and about 8 million drivers compared to the end of 2024. New car sales in China reached 26.9 million in 2024, an increase of 9.53%, which illustrates the fact that the momentum in the automotive market continues.

By region, 96 cities across China currently have more than one million active vehicles. Six of these cities have exceeded the five million vehicle mark, while 45 cities have exceeded the two million vehicle mark.

“New energy” vehicles – electric, plug-in, and hybrid – continue to be a growth engine in the Chinese automotive market, with their number in the country reaching approximately 31.4 million by the end of 2024, an 8.9% share of the total vehicle stock. Last year, approximately 11.25 million such new vehicles were registered on the road, an increase of almost tenfold compared to 2019.

The Chinese government notes that the continuous increase in the number of motorized vehicles is an important sign of economic and social development and an improvement in the standard of living. It stems, among other things, from rising incomes, which have made cars a standard household consumption product, and from government policies such as subsidies for car purchases and exemptions from purchase taxes.

China aims for 28 million public charging points by the end of 2027

The Chinese government is preparing for a major expansion of the country’s charging infrastructure by the end of 2027, with a target of deploying about 28 million public charging points with a cumulative capacity of 300 gigawatts. The expansion will be accompanied by a wide range of measures to upgrade the network, connect remote areas, and improve services.

According to a new document from the National Development and Reform Commission, the government estimates that by the end of 2027, there will be more than 80 million EVs in the country. To provide the electricity needed to charge them, the public charging network is set to grow to 28 million charging points. Currently, there are about 17.35 million charging points in China, an increase of 53.5% compared to the previous year. Now, the expansion needs to continue at a similar annual rate to achieve the new target, announced by the end of 2027. Since the available rated power is expected to double in that period, it is likely that fast and ultra-fast chargers will be installed instead of lower-power chargers.

The government has set a number of interim targets to be reached by the end of 2027:

• Installation of 1.6 million new DC chargers in urban areas, including 100,000 high-performance models.
• Installation of 40,000 ultra-fast charging stations at highway service stations.
• At least 14,000 DC chargers will be installed in communities without public charging stations to achieve better coverage in rural areas.
• Private charging facilities will be placed as part of pilot programs in 1,000 residential areas to promote their design, construction, and maintenance.
• In addition, more than 5,000 bidirectional charging and discharging units will be installed for large-scale trials of vehicle-to-grid (V2G) technology. These are planned to have a recharging (to the grid) capacity of over 20 gigawatts.

The plans include modernizing or replacing devices that are more than eight years old or that do not yet support 800-volt technology in the case of fast-charging stations.

“China’s charging infrastructure continues to face problems such as uneven distribution of public networks, suboptimal design and functionality of facilities, insufficient charging services in residential areas, weak power supply, and inefficient management and operation”, an official said.

China sees bottlenecks mainly in public charging stations on highways, tourist sites, and in rural areas. For residential areas, regulations state that charging stations must be built or pre-installed in new residential areas established in the country. In existing neighborhoods, charging stations must be added according to local conditions.

The basic condition for improved supply is, of course, upgrading the power grid, which China also lists as a fundamental goal in its action plan. The country also wants to improve online charging services through mobile apps and websites, and standardize pricing mechanisms to ensure greater transparency.

India

The Indian government continues its efforts to improve the environmental footprint of the country’s auto market

After decades of neglecting the issue of emissions and other environmental impacts of vehicles, the Indian government is now preparing to align with the stricter standards accepted in the West. This is due, in part, to international treaties signed by the government and the increasing difficulty of attracting global investors to economies that do not adopt strict "Green" standards.

In September 2025, the Indian government released the draft of CAFE 3 standards, which stands for Corporate Average Fuel Efficiency. Stakeholders and affected parties were invited to submit comments and feedback by October 16, 2025, with the ultimate goal of the new standards coming into effect in April 2027 and remaining in effect until March 2032.

The new CAFE 3 standards give equal emphasis to EVs and flex-fuel vehicles, i.e., hybrid vehicles that use “Green” fuels. This is a significant change from the outgoing CAFE 2 standards, which focused primarily on EVs.

However, the standards framework continues to offer government incentives for EVs and introduces a “Super-credit” mechanism: each EV sold counts as three vehicles towards meeting the mandatory average. Plug-in hybrids and hybrid vehicles with green fuels receive a multiplier of 2.0 to 2.5, while vehicles that dually use ethanol and regular fuel receive a credit of 1.5.

Any deviation from the target for reducing the average fleet of manufacturers will result in fines in multiples of the number of vehicles sold, making them very significant for large manufacturers. At the same time, India is preparing to implement future and stricter emission standards equivalent to the European Euro-7.

In addition, as part of the green moves, the Indian government adopted, in April this year, environmental protection regulations relating to the recycling and treatment of vehicles at the end of their service life. The regulations impose an extended responsibility on vehicle manufacturers for the recycling of vehicles that reach the end of their service life starting from 2026, including commercial vehicles that are 15 years old and private vehicles that are 20 years old.

Australia

New research: Chinese auto manufacturers are breaking into Australia and may conquer 43% market share by 2035

Australia is also rapidly becoming a "Chinese" car market. According to research published in October, Chinese automakers are flooding the Australian market with electric, hybrid, and ICE cars, taking market share from manufacturers from Japan, Korea, and Europe.

The Australian car market is considered one of the most competitive in the world, with more than 70 brands competing for 1.2 million new vehicle sales a year. In the past year alone, about 10 more Chinese carmakers have entered the market, with many more planning to enter. Industry executives even predict that the number of brands in the country will increase from 70 to about 100 in the next two to three years, led by China.

In the first half of 2025, Chinese car brands achieved about 16% of sales in Australia, with Great Wall and MG ranked seventh and tenth in the sales table, respectively. BYD jumped to eighth place with a 137% increase compared to last year, achieving 23,355 sales, an extraordinary achievement in Australian terms for a brand that entered the market just three years ago.

Chinese carmaker Chery reported a 228% year-on-year increase in sales to 14,123 units, driven by the Tiggo 8 Pro, the cheapest seven-seat SUV on the market.

Analysts say one of the most surprising trends is the aggressive entry of Chinese manufacturers into the pickup truck market, or UTS as they are known in Australia. This segment accounts for about 20% of all annual car sales in Australia.

The study, commissioned by the Australian Automobile Dealers Association, predicts that by 2035, Chinese-made vehicles, including models from Western brands such as Tesla, Volvo, and BMW, which are produced in Chinese factories, will account for 43% of car sales in Australia.

This trend is driven, among other things, by significant Chinese advantages in production costs, and new stricter fuel consumption and emissions standards, which will come into force in Australia next year and will give a significant advantage to manufacturers of electric and hybrid models.

Analysts point out that Australia is an ideal market for Chinese manufacturers because it no longer has a domestic car industry, has almost no trade tariffs, is geographically close to China, and has a well-established population alongside an established car distribution network. Therefore, the Australian market is a preferred export channel for China's excess production capacity.

The main challenge for Chinese manufacturers in Australia is establishing a national service and warranty network that will meet consumer standards.

South Korea

South Korea and the US are trying to bridge the gaps on the way to a new trade deal centered around the auto industry

During October, intensive talks between senior officials in the Korean and US governments continued with the aim of formulating a new trade agreement. In mid-October, a delegation of senior ministers from the Korean government left for meetings in the US, and a senior official in the delegation said that he was optimistic about the talks. This comment was enough to push the Korean stock market into the green, with an emphasis on shares in the automotive sector.

The comment followed the Korean Foreign Minister's statement a few days earlier that "Tremendous progress has been made in the talks" and that there were "Positive signs" of reaching an agreement. The US side also sounded optimistic, and the Finance Minister said that "The countries are close to formulating a trade agreement".

South Korea had aimed to reach an agreement by the end of October, in time for US President Donald Trump's visit to the country, as part of the Asia-Pacific Summit.

Koreans are still uneasy about the structure of Korea's $350 billion investment package in the US, which was included in the initial agreement reached at the end of July, due to the possible impact of currency fluctuations and the lack of commercial feasibility.

Meanwhile, the reduction of tariffs on Korean vehicles imported into the US from 25% to 15%, which the US promised to implement when the final agreement is signed, is also being delayed. This did not prevent the South Korean stock index KOPSI from surging to an all-time high in mid-October, led by automakers Hyundai and Kia.

Later, Korean officials tried to cool the enthusiasm, saying that "The appropriate conditions have not yet been met, especially with regard to establishing a currency protection mechanism". Local economists even added that there has been no change in the $350 billion investment target set by the US as a condition.

Meanwhile, Senior Korean government officials have sharply criticized Hyundai Motors' announcement that it intends to invest billions of dollars in the US, at a time when the Korean government is in the midst of negotiations and needs every possible lever of pressure on the US.