Global vehicle sales are expected to rise 1.7% year-over-year to 89.6 million units, according to S&P Global Mobility, hinting at cautious growth after several tumultuous years for the category.
The outlook looks at a number of forces including supply, tariff impacts, high interest rates, affordability challenges and the challenges of electrification.
“2025 is shaping up to be ultra-challenging for the auto industry, as key regional demand factors limit demand potential and the new U.S. administration adds fresh uncertainty from day one,” said Colin Couchman, executive director of global light vehicle forecasting for S&P Global Mobility. “A key concern is how natural EV demand fares as governments rethink policy support, especially incentives and subsidies, industrial policy, tariffs, and fast evolving OEM target setting.”
For automotive marketers, that means delivering better customer service, embracing new technologies and cultivating loyalty.
“Selling cars in 2025 is all about selling an experience, not just a vehicle,” says Brad Audet, chief marketing officer, Mazda North American Operations. “While the revolution of electrification, connected technology and safety enhancements is top of mind for automakers, the human element remains paramount. Amidst evolving regulations and industry disruption, connecting and building relationships with customers based on shared values and empathetic engagement will be the key to unlocking automotive marketing success.”
AI will be a big theme for all marketers in 2025 and this includes car marketers. “Automotive marketing will center around AI-driven innovations that redefine how brands connect with consumers,” says Shelley Pratt, director, marketing communications and media at Infiniti.
“AI will enable hyper-targeted advertising, leveraging advanced data insights to deliver highly personalized campaigns that resonate on an individual level,” she continues. “This personalization will streamline the buying process, supported by tools like AI-powered chatbots capable of predicting individual client needs. However, maintaining the human touch in these interactions will be critical to fostering trust and enhancing the client experience.”
“Content creators will play a pivotal role in this evolution, utilizing AI tools to craft engaging and relatable stories at scale,” she adds. “Formats like short-form video, particularly Reels, will be key for showcasing vehicles in dynamic and aspirational ways. As retailers plan to increase their AI budgets to enhance digital operations, the automotive sector is poised to embrace authentic, tech-enhanced strategies that build deeper, more meaningful connections with consumers.”
Kim Ito, vice president of marketing at Mitsubishi Motors North America, says that a back to marketing basics approach will be necessary in the new year. “The fundamental task of any effective marketing team is still going to be cutting through the clutter and noise in everyone’s daily lives to deliver a clear and compelling message. Clarity, creativity and authenticity are arguably more important than ever, as consumers continue their move away from brand and product loyalty.”
“Getting and keeping customers remains the goal, as transitioning shoppers into new customers is more challenging and expensive than ever before,” she continues. “The lines between performance marketing and brand marketing will become blurred across all industries, but in particular in the car industry, as incentive spend continues to climb and brand loyalty remains low.”
At Mitsubishi Motors North America, the 2025 focus is on perfecting every touchpoint in the brand-level experience and transitioning it to their individual vehicles. “We’re investing heavily in the digital retail experience – a project we call ClickShop 2.0 – in order to give customers the ability to shop where, when and how they want, including from home, and the transparency built into our program gives them the confidence car buyers are seeking,” adds Ito. “With our lineup moving into hybrids, plug-in hybrids and battery electrics over the coming years, we need to be ready for the next generation of shopper who lives a digital-first life.”
“Developing perks of ownership also will be important and a key way to differentiate between brands, rewarding the most loyal customers and building their loyalty toward an extension of brand-level messaging. Brands will need to offer added value with a vehicle purchase: we already offer Mitsubishi Motors Confidence, providing two-years of included maintenance and an industry leading warranty, and we’re looking at other ways to reward our most passionate owners as well.”
