In the first half of 2025, global car sales increased compared to the same period in 2024. The 34 companies analyzed sold 37.6 million units, marking a 3 percent rise. This growth was driven by Toyota, BYD, and Geely, which offset declines from Stellantis and Tesla.
However, despite the higher sales volume, total revenue fell to $1.14 billion—a 2 percent decrease year-over-year. As a result, the average price per unit dropped from $38,084 to $36,074.
Although most Chinese manufacturers were not included in the analysis, China’s ongoing price war helps explain the decline in average prices. BYD and Geely increased their volumes by 33 percent and 47 percent, respectively, but BYD’s revenue grew by only 14 percent, and Geely’s remained flat.
Notably, BYD ranked as the sixth-largest global automaker by volume in the first half of 2025.
Profits Down By 23 Percent
Even more concerning for the sector is the sharp decline in profitability. A combination of factors—including the ongoing price war in China, stagnant global demand, rising costs in Europe, trade disruptions, and uncertainty stemming from tariffs imposed by US President Donald Trump—has significantly impacted the industry.
Operating profits (gross profit minus selling and administrative expenses) dropped by 23 percent, falling to $122.2 billion. Among major manufacturers, the steepest declines were recorded by Stellantis and Nissan, followed by Mercedes, Ford, Tesla, Volkswagen, BMW, Honda, and Kia.
Top 5 Brands for Revenue Increase
First half of 2024 compared to the first half of 2025
| Â | Revenue (In Billions) | Vs H1 2024 | Units Sold | Vs H1 2024 |
| Leapmotor | $3.38 | +154% | 222,000 | +156% |
| Xpeng | $4.76 | +115% | 197,000 | +279% |
| Polestar | $1.42 | +43% | 30,300 | +51% |
| Lucid | $0.49 | +21% | 6,4 | +47% |
| BYD | $51.58 | +14% | 2,146,000 | +33% |
| Total* | $1.36 | -2% | 37,605,000 | +3% |
*34 OEM manufacturers
An Uncertain Future
Even more dramatic was the collapse in net profits, which fell to $26.6 billion—a 69 percent drop compared to 2024. As a result, the average net margin declined from 6.1 percent to just 2.0 percent in a single year. This sharp decline reflects the broader climate of uncertainty affecting both Western and Chinese automakers.
Without more flexible regulation in Europe, clearer trade policies in the U.S., and an end to the price war in China, the sector’s outlook remains highly uncertain. Only three manufacturers managed to grow their net profits: Suzuki (+9%), Ferrari (+9%), and BYD (+2%).
Top 5 For Net Margin First Half of 2025
- Ferrari: 23.4%
- Suzuki: 9.1%
- Kia: 8.1%
- Hyundai: 7.2%
- GWM: 6.9%
- Total (34 OEM manufacturers): 2%
The Most Profitable Automaker Per Unit Sold
- Ferrari: $138,764
- Jaguar Land Rover: $6,022
- Porsche: $5,762
- Mercedes Group: $2,933
- BMW Group: $2,384
- Total (34 OEM manufacturers): $706
The author of the article, Felipe Munoz, is an Automotive Industry Specialist at JATO Dynamics.
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