Cox Automotive has released its year-end predictions for what 2025 will look like for the automotive industry. In today’s episode of CBT Now, we’re continuing the conversation by examining the market overall. Here now is Erin Keating, the Senior Director of Economic and Industry Insights at Cox Automotive.
Keating anticipates a bright forecast for 2025, projecting a 2.6% growth in the overall automotive market. While acknowledging potential challenges, such as political and regulatory uncertainties, Keating emphasized the resilience of the market. She revealed that 2025 is expected to be the best year since 2019, with an estimated 16.3 million units sold, a 3% increase compared to previous years.
The used vehicle market is also expected to grow, marking its third consecutive year of expansion despite inventory constraints. Profitability for dealers is set to remain strong, even though it may not reach the highs seen during the pandemic boom years.
On the electrification front, Keating was optimistic, predicting that 25% of vehicles sold in 2025 will be electrified, with 10% being fully electric and 15% plug-in hybrids or hybrids. While Tesla remains a key player, new and exciting models from other automakers are increasing competition. He also pointed to state-level incentives and the growing infrastructure for EVs as key factors in supporting this transition, with over 200,000 charging stations now in operation.
Regarding consumer sentiment, Keating noted a rise in satisfaction, with 75% of buyers reporting high levels of contentment with their vehicle purchases. This is attributed to dealers’ ability to balance technology with exceptional in-showroom experiences, creating a positive buying environment for consumers.
"I think it's going to be a good 2025. I look forward to seeing the energy at NADA in January and to continue to be able to report on great sales." – Erin Keating.
