Global auto industry facing demanding environment, says OICA president

In 2025, global automobile production of passenger vehicles, trucks and buses rose to 96.4 million units from 92.7 million units in 2024, an increase of 3.9 per cent, OICA chief said

The global automotive industry is facing a demanding environment due to factors such as uncertainty linked to trade tensions, supply chains and energy prices, according to International Organisation of Motor Vehicle Manufacturers (OICA) President Shailesh Chandra.

Speaking at the launch of OICA's Global Automobile Industry's annual sales data at the sidelines of the Beijing Motor Show, he said technological change, geopolitical pressures and diverging public policies are reshaping the global automotive industry.

Although there is growth in the automotive industry globally, it is distributed with some regions witnessing growth while others declined, Chandra, who is also the President of Society of Indian Automobile Manufacturers (SIAM) and Managing Director & CEO, Tata Motors Passenger Vehicles Ltd, said.

 

In 2025, global automobile production of passenger vehicles, trucks and buses rose to 96.4 million units from 92.7 million units in 2024, an increase of 3.9 per cent, he said.

On the other hand, global vehicle sales increased to 99.8 million units in 2025 from 95.3 million units in 2024, posting a growth of 4.7 per cent, Chandra said.

"The industry remains resilient, but the environment has become far more demanding. Manufacturers are managing slower growth in some markets, fiercer competition in others, and continued uncertainty linked to trade tensions, supply chains, affordability, energy prices and the pace of electrification," Chandra said.

Though there is global growth, the growth is distributed. Some regions witnessed growth while others declined.

Production in Asia-Oceania grew by 7.6 per cent, while Europe and the Americas declined by 0.8 per cent and 2.1 per cent, respectively, in 2025, compared to 2024, Chandra said, adding production in Africa was broadly stable with a slight decline of 0.3 per cent.

Chandra was elected in November last year as the President of OICA, the worldwide federation representing national associations of motor vehicle manufacturers that has 36 member associations.