The Autofacts® Market Update – March 2026 report provides an up‑to‑date view of key developments, forecasts and insights shaping the global automotive industry, with coverage across the Europe, ASEAN‑6, China and the United States.
The report also highlights how geopolitics has become a structural force - reshaping automotive cost structures, production decisions and market access strategies worldwide. This includes the impact of the Iran war and shifts in the market capitalisation of leading global original equipment manufacturers (OEMs).
Crude oil and aluminium prices remain elevated amid ongoing Iran war ❯
With 25% of global oil trade passing through the Strait of Hormuz and 9% of global aluminum processing occurring in the Middle East, prices for both are approaching record highs.
Chinese brands extend their presence in Europe, while slowing in their domestic market ❯
Chinese brands are to cross the 4% market share barrier in Europe at the cost of German OEMs. In the Chinese market, foreign brands are recovering so far this year.
Some legacy OEMs have yet to return to pre-COVID sales volumes ❯
In 2025, European and North American manufacturers largely maintained their 2024 levels, while Chinese OEMs continued to grow post-COVID-19.
Vietnam’s automotive industry stands out within ASEAN-6
Vietnam’s automotive market recorded 20.3% sales growth in 2025, ranked as the second‑fastest growing market in ASEAN‑6. This momentum stands against a more uneven regional backdrop, where growth remains under pressure from macroeconomic volatility and shifting trade dynamics.
Vietnam’s total industry volume growth was underpinned by strong GDP growth (+8.02%) and rising GDP per capita (~USD5.026), which made entry-level 4Ws affordable for more households.
Boost competitiveness by strengthening innovation
Beyond Vietnam, the report highlights how electrification continues to reshape demand, with the Europe’s battery electric vehicle (BEV) sales rising 16% year‑on‑year, due to the implementation of stricter CO2 emission targets between 2025 and 2027. At the same time, an increasing number of new, affordably priced BEVs are being launched across all major markets.
On the other hand, the automotive industry places strong strategic emphasis on innovation, driven by digitalisation and new mobility trends. While many firms collaborate externally, there is significant potential to deepen partnerships with startups, tech providers, and research institutions to accelerate innovation.
The revenue growth confidence gap has notably widened within the automotive industry and compared to other sectors over the past years. The downward trend reflects growing scepticism within the automotive industry due to ongoing challenges, including technological upheavals, regulatory requirements, supply chain issues, and changing customer expectations.
1n=134 2n=4,454 32023 n=129; 2024 n=127; 2025 n=153 42023 n=4,399 2024 n=4,688 2025 n=4,438 5very or extremely confident
