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Auto manufacturing sector is heavily reliant on our online platform.

In the face of persistent chip shortages and escalating manufacturing expenses, the worldwide automotive sector remains operational, as noted by Jonathan Gauntt, a bond analyst at Aegon AM.

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3 min read
Automotive sector heavily relies on our online platform.
Automotive sector heavily relies on our online platform.

Auto manufacturing sector is heavily reliant on our online platform.

The automotive industry is on the mend, with electric mobility taking centre stage in the recovery efforts. After a dip in 2020 due to the pandemic, global automotive production is projected to reach nearly 89 million units in 2022, returning to pre-pandemic levels. This resurgence, however, is not uniform across all regions, with electric vehicle (EV) production showing varying growth patterns.

China, the world's largest automotive market, is leading the charge in EV production and sales growth. In May 2025, Chinese EV sales hit approximately 1.02 million units in a single month, marking a 24% year-over-year increase. Europe follows closely, with about 330,000 EVs sold in May 2025, up 36% year-over-year. North America, while growing, is doing so at a slower pace, with EV sales increasing by only 7.5% in May 2025 to around 160,000 units.

Market Forecasts and Size

The global EV market is expected to expand dramatically through 2030 and beyond. According to one projection, the global EV market value was approximately USD 988.7 billion in 2025 and is forecasted to reach around USD 2,529.1 billion by 2034, with a compound annual growth rate (CAGR) of 11% from 2025 to 2034. Another projection suggests a slightly higher growth rate on a shorter term, with the global EV market rising from USD 555.2 billion in 2025 to USD 2,006.3 billion by 2030, at a CAGR of 29.3%.

Comparison to Overall Automotive Industry Recovery

While EV sales are growing strongly across major markets (double-digit growth in China and Europe), the broader automotive industry recovery is uneven. The North American automotive market shows signs of plateauing in EV growth, indicating that traditional automotive recovery and EV growth are not perfectly aligned regionally.

Key Regional EV Growth (May 2025 data)

| Region | EV Sales Volume (May 2025) | YoY Growth Rate | Market Trends | |---------------|----------------------------|-----------------|------------------------------------------------------| | China | ~1.02 million | +24% | Largest EV market; continued rapid sales expansion | | Europe | ~330,000 | +36% | Strong government incentives, diverse EV models | | North America | ~160,000 | +7.5% | Slower growth; plateauing trend; infrastructure limits|

Additional Context

Industry leaders, such as Ford and Mercedes-Benz, are investing billions in electrification and launching numerous new EV models targeting markets in these regions, supporting the growth trends. Technologies such as AI and improvements in battery management are also improving EV efficiency and appeal, further driving adoption worldwide.

In conclusion, China and Europe are projected to sustain strong EV production and sales growth (20%+ CAGR), while the USA/North America grows more moderately (single-digit CAGR). This contrasts with the overall automotive industry recovery, which is more uneven and slower, as EVs become the main engine of future automotive growth and transition. Investors should closely monitor the automotive sector, particularly market leaders in electric vehicle production focusing on purely battery-powered vehicles.

  1. The renewable-energy sector, with electric mobility at its forefront, is powering the recovery of the automotive industry.
  2. Global manufacturing of electric vehicles (EVs) is projected to reach 89 million units in 2022, returning to pre-pandemic levels.
  3. Finance and investment in the automotive industry are focusing on electrification, with companies like Ford and Mercedes-Benz allocating billions for this purpose.
  4. The aerospace and transportation industries are also taking note of the EV transition, as technologies such as AI and improved battery management boost efficiency and appeal.
  5. The housing-market sector should be aware of the growing trend of smart-home devices and their integration with electric vehicles, offering potential new business opportunities.
  6. In personal-finance advice, investing in the commercial sector, particularly real-estate properties near charging stations or EV-focused businesses, could yield attractive returns.
  7. The technology industry is experiencing a surge due to the increasing demand for gadgets related to smart grids, electric mobility, and energy management.
  8. The automotive industry's growth is not uniform across all regions, with China leading in EV production and sales growth, followed by Europe and North America, where growth is more moderate.
  9. As electric vehicles become the main engine of automotive growth, it is essential for businesses in various industries to keep an eye on market leaders in electric vehicle production and the trends in the housing and commercial real-estate market.

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