Asia’s Automotive Industry: Forecasts for 2025 and Projections for 2026

Automobile sales in (nine countries [see table below] excluding Japan and China) are projected to reach 11,003,000 units in 2025, a 3.1% increase from the previous year. This marks the first growth in two years and the first time the market is expected to exceed the 11-million-unit threshold. In India, passenger vehicle sales surged in October and November 2025, with both months seeing a 20% year-on-year increase. This rapid growth was driven by the Goods and Services Tax (GST) rate cut implemented in September 2025, combined with further price reductions by OEMs. In Thailand, new vehicle sales are expected to bottom out and shift toward a recovery trend for the full year. This is attributed to rising BEV sales—fueled by purchase subsidies, preferential excise tax rates, and a concentration of new model launches—as well as growing HEV sales supported by tax incentives and new releases. Similarly, sales in South Korea are projected to grow, led by HEVs and BEVs, thanks to incentives for electric vehicles and preferential individual consumption tax measures for passenger cars. Looking ahead, sales across these nine countries are predicted to continue growing in 2026, remaining above 11 million units. This sustained growth is expected to be driven by the continued expansion of the large Indian market, alongside anticipated market recoveries in both Thailand and Indonesia.