Global Trends in Automotive Sales 2025
Changes in Sales Models
Sales models in the automotive industry are undergoing fundamental transformations. Manufacturers are increasingly taking over direct sales processes, positioning dealerships as intermediaries or service partners. The goal is to achieve more consistent pricing, better customer data, and direct customer engagement.
The agency model reshapes the role of dealerships by focusing on customer experience, advisory services, and regional market development. Dealers lose some autonomy as inventory management and pricing are handled by manufacturers. Robust online platforms are a core component of direct sales, enabling customers to configure, finance, and order vehicles online. Dealerships act as pickup and service points within an omnichannel approach.
Challenges of these new models include reduced margin flexibility and entrepreneurial freedom for dealers, as well as increased dependency on manufacturer guidelines. Dealers must focus more on service quality and customer retention, while manufacturers face the task of ensuring efficiency and profitability in logistics and sales processes, along with overcoming resistance from long-standing dealer partners.
However, these changes also present opportunities for dealers. By investing in advisory quality, digital tools, and regional networks, they can play a key role in enhancing the customer experience and position themselves as indispensable partners in the new sales model.
BEV Used Cars
The market for used battery electric vehicles (BEVs) is growing rapidly. The surge in new electric vehicle registrations in recent years, driven by government subsidies, has resulted in an increasing supply of used BEVs, particularly lease returns. These range from compact models like the VW ID.3 and BMW i3 to premium BEVs such as the Tesla Model S and Porsche Taycan.
Rapid technological advancements, such as longer ranges and more efficient batteries in new vehicles, reduce the appeal of older models. Concerns about battery degradation and high replacement costs further accelerate depreciation. Dealers and manufacturers face challenges as low residual values pressure margins, and lease returns often fall short of predicted residual values, leading to losses.
Whitepaper: BEV Used Cars Under Pressure
Our whitepaper explores the current challenges in the used BEV market and outlines how dealers and manufacturers can respond to market changes with targeted strategies and innovative business models. These approaches not only address existing hurdles but also help strengthen market positions sustainably.
*The white paper is currently only available in German.
Developments in the Classic Car Business
The classic car business is experiencing significant growth, particularly in the premium and luxury segments. Manufacturers like BMW, Porsche, and Mercedes-Benz are expanding their offerings to include factory restorations, hard-to-source spare parts produced with modern technologies such as 3D printing, and sponsorships of classic car events like the Mille Miglia and Goodwood Revival. These initiatives foster emotional connections between customers and brands.
At the same time, manufacturers and dealers are professionalizing the classic car sector through specialized competence centers and targeted training for workshop staff and sales teams. These measures appeal especially to brand enthusiasts and collectors who are willing to make significant investments in vehicles and services.
As interest in non-automotive products such as bicycles and e-bikes declines, manufacturers and dealers are increasingly focusing on the classic car business. This sector offers substantial potential due to its high margins and strong brand loyalty, strengthening their position in the traditional market against diversified competitors.
Consolidation in Automotive Sales
In 2025, the automotive sector enters a phase of consolidation driven by rising competitive pressures and the need for efficiency. Companies must secure their market position while leveraging strategic partnerships and mergers to remain competitive.
Market Power and Synergies
Leading dealer groups like Emil Frey, Penske Automotive, and the AVAG Group are acquiring small and mid-sized dealerships to capitalize on economies of scale and strengthen their market presence. This trend is driving the internationalization of the dealership landscape, with major groups from Europe, the U.S., and Asia entering new markets to leverage global synergies and standardized processes.
Challenges for Smaller Dealerships
Smaller dealerships face mounting pressures, including demands for digitalization, sustainability reporting, and direct sales, as well as shrinking margins. Many are compelled to join larger groups or exit the market. High investments in technologies such as online sales platforms and CRM systems often exceed the capacities of smaller players. The growing complexity of business models, particularly through direct sales and agency systems, adds to their challenges.
Competitive Intensity and Market Dominance
Consolidation reduces the number of dealership locations, especially in rural areas, intensifying competition. Remaining players invest heavily in customer retention and digital innovation to stay competitive. Large groups are expanding their networks and dominating the market, leading to greater concentration. Consolidated groups rely on standardized processes, modern infrastructure, and unified customer experiences, which can enhance sales quality.
Global Trends and Future Outlook
International trends indicate that the U.S. and Europe are leading the way in consolidation, while Chinese dealer groups are increasingly entering global markets to capitalize on the growth of electric mobility. Major dealer groups are also tapping into new growth opportunities in emerging markets such as India, Southeast Asia, and Latin America.
Consolidation brings challenges, such as manufacturers' dependence on large groups and potential neglect of personalized customer service. However, the pace of consolidation is expected to accelerate in the coming years. Smaller dealerships must specialize or form partnerships to remain competitive. Nonetheless, opportunities exist to carve out strong market positions through innovative niche strategies, exceptional service, and local expertise, positioning themselves as flexible partners for both manufacturers and customers.
