Light truck sales soar, tire industry ushered in a new trend

According to the latest report released by LMC Automotive, the global seasonally adjusted annual sales of light vehicles in March 2025 are expected to be 90 million units/year, an increase from the previous month and higher than the full-year sales level in 2024. Despite the cloudy global economic outlook, year-on-year data showed that sales in the month increased by 7.1% to 8.53 million units, and cumulative sales from January to March increased by 6%. In March, sales in major markets such as the United States, China, and Western Europe all achieved growth.

The global light vehicle market is strong

North America

In March, U.S. light vehicle sales increased by 11.2% year-on-year to 1.61 million units. The number of sales days in the month was one day less than the same period last year, so the year-on-year sales growth adjusted for sales days was 15.5%. The average transaction price of new cars in March was $44,789, down $316 from the previous month, but up $577 from the previous year. The sales incentive for the month fell from $3,162 in February to $3,068. Canada's March sales surged 15.4% year-on-year to 183,000 units, while Mexico's March light vehicle sales rose 5.8% year-on-year to 132,000 units, the highest March sales since 2017.

Europe

The seasonally adjusted annualized sales of light vehicles in Western Europe fell to 12.6 million units/year in March, while sales were roughly the same as last year. U.S. President Trump's tariffs on imported cars and broad tariffs on all trading partners have deepened concerns about a global trade war. The seasonally adjusted annualized sales of light vehicles in Eastern Europe fell more than 18% in March from February, and sales fell more than 10% year-on-year for two consecutive months. Russia's sales fell sharply that month, down 40% year-on-year, casting a shadow on the sales outlook in Eastern Europe in 2025.

China

Passenger car sales (referring to wholesale sales) in China reached 2.4 million units in March, setting a record for March sales and an increase of 11% year-on-year. Cumulative passenger car sales in January-March increased 12% year-on-year to 6 million units. The rebound in retail sales supported sales in March.

Elsewhere in Asia

Japan posted double-digit year-on-year sales growth for the third consecutive month in March. The strong performance was due to the low year-on-year base caused by the vehicle certification scandal last year, which affected vehicle production and sales. However, seasonally adjusted annualized sales in March continued to decline from the previous month, falling to 3.8 million units/year, down 24% from January. The South Korean light vehicle market is on an upward trend, with seasonally adjusted annualized sales increasing month by month since the beginning of the year. Cumulative light vehicle sales in January-March increased by 2.5% year-on-year.

South America

In March, light vehicle sales in Brazil increased by 4.6% year-on-year to 184,000 units. In March, the Argentine market continued to maintain its strong growth trend, with light vehicle sales increasing by 82.7% year-on-year to 44,700 units.

The country's market achieved seasonally adjusted annualized sales exceeding the 500,000 units/year mark for the first three consecutive months since the fourth quarter of 2018. With the rapid development of the logistics industry, the domestic truck and bus market has been led by light and heavy trucks in absolute numbers for nearly a decade, which is consistent with our daily cognition. Light trucks, with their flexible configuration and efficient transportation, have always been far ahead in sales.

Previously, the ratio of heavy trucks to light trucks in most regions was generally maintained at 1:1.5, but with the rapid development of the express delivery industry, in most regions of the country, the ratio of heavy trucks to light trucks has almost expanded to nearly 1:2. With the development of light trucks and heavy trucks, it is clear where tire companies and tire stores should focus their efforts next.