This report highlights key trends in the global automotive and mobility sector in 2025. Rising geopolitical tensions and trade disruptions create more uncertainty for businesses and disrupt supply chains, encouraging production network changes. To deal with uncertainty and erosion of consumer spending power, companies will need to focus on affordability, resource sharing and creation of new revenue streams.
Strategy Briefings offer unique insight into emerging trends world-wide. Aimed squarely at strategists and planners, they draw on the vast information resources to give top line insight across markets and within consumer segments. Written by some of our most experienced analysts, they are designed as provocations for senior management to use in their own forum, allowing them to stand back and reflect on the behaviour and motivation driving global markets today and tomorrow
Key findings
Changing trade landscape to impact supply chains
Rising geopolitical tensions and US trade policy changes will significantly impact the automotive industry in 2025, with potential profit margin drops of up to 30% due to higher import tariffs. Short-term fixes to maintain market share and long-term production localisation will be crucial to mitigate these effects.
Market changes to drive growth of affordable EVs
Rising costs and economic uncertainty will make affordability a critical factor in EV purchases, with 60% of consumers citing high costs as the main barrier to purchase. Rising competition from China will also pressure Western companies to offer more affordable models or risk losing market share.
Meeting stricter regulations will remain among priorities
Stricter emissions regulations, such as the EU's 2035 ban on internal combustion engines, will drive the automotive industry’s push towards net-zero emissions. Early adaptation and supply chain improvements will be crucial for survival and market advantage; otherwise, companies risk steep fines.
Subscription services to remain under radar
The subscription model remains a novel sales concept in the car industry; however, a changing consumer base is likely to create stronger demand for such services. If companies manage inventory levels well, subscription services can unlock new and more stable revenue streams.
Shared mobility providers to capitalise on AI
The rise of multimodal mobility platforms, driven by urbanisation and AI integration, is forecast to accelerate over the next five years. Shared mobility companies are expected to develop super apps that promise to solve last-mile transportation issues and offer new revenue streams through data monetisation and dynamic pricing.
Report Scope
- Data coverage: market sizes (historic and forecasts), company shares, brand shares and distribution data.
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