BNP Paribas Report Highlights Steady Global Auto Sales Growth in March 2025 Amid Regional Variations

Global automotive sales remained strong in March 2025, with an estimated year-on-year growth of approximately 6%, according to BNP Paribas' latest India Automotive report. The expansion was largely driven by solid performance in the United States and the United Kingdom, while growth in European Union markets remained subdued.

The report highlights that despite the overall industry growth, premium vehicle sales underperformed, registering only marginal growth globally. In the US, the premium segment grew by around 7%—still behind broader market trends—while sales in the EU and UK declined by about 4% and 3% respectively.

Battery Electric Vehicle (BEV) penetration showed monthly improvements in the UK, Germany, and China, but slightly declined in the US. Hybrid Electric Vehicles (HEVs) continued to gain traction across most tracked markets, indicating a gradual shift in powertrain preferences.

In France and Germany, xEV (electrified vehicle) penetration reached 70.3% and 57.2% respectively in March. The UK also witnessed a robust 37% year-on-year rise in EV volumes, though its xEV mix declined due to a higher share of petrol-powered vehicles.

Demand-side indicators were mixed. While used-car prices remained steady and US vehicle incentives declined as a percentage of average transaction prices (ATP)—generally positive signs for demand—consumer confidence took a hit in the US and EU. The UK, however, saw a marginal improvement in sentiment.

Jaguar Land Rover (JLR) saw retail sales dip by 12% globally, with steep declines in the UK (-19%) and EU (-25%). The US provided some relief, recording an 8% increase in JLR sales. Market share for JLR remained steady in the US but slipped in Europe and the UK. The company’s wholesale volumes for Q4 FY25 rose by 1.1% year-on-year, although a temporary halt in US shipments could impact upcoming figures.

Dispatches by SMRP BV clients, a subsidiary of Samvardhana Motherson International, were provisionally down by about 8% in March. However, BNP Paribas expects slight upward revisions once complete data is available. While OEMs like Ford and Hyundai showed growth, major clients like Daimler, BMW, and Volkswagen posted volume declines.

Among tracked Indian automotive stocks, BNP Paribas sees the strongest upside potential for Tata Motors (60%), Maruti Suzuki (56%), and Samvardhana Motherson (42%) based on their 12-month target prices and current valuations.