Global light vehicle market falters in February

Western Europe - The Western European light vehicle (LV) market saw a modest improvement in February with sales totaling 986k units, up 1.6% year-on-year (YoY) [1] - The monthly selling rate improved to 14.6 million units/year, while year-to-date (YTD) sales stand at 2.27 million units, down 2.3% from the same period in 2025 [1] - A significant contraction in France negatively impacted overall regional growth, and the outlook for 2026 is cautious due to potential inflationary pressures from recent developments in Iran [1] Canada and Mexico - Canadian light vehicle sales totaled an estimated 119k units in February, down 0.4% YoY, with a selling rate of 1.95 million units/year [2] - In Mexico, sales increased by 2.7% YoY to 127k units, although the selling rate eased to 1.71 million units/year [2] United States - US light vehicle sales fell by 3.6% YoY in February to 1.18 million units, with an annualized selling rate of 15.6 million units/year [3] - Weak electric vehicle (EV) sales and affordability concerns continue to hinder market performance, with average transaction prices at US$45,876, down US$327 month-on-month (MoM) but up 1.8% YoY [3] Global Market - Global light vehicle sales showed signs of faltering, with notable declines in both China and the US impacting overall volumes [4] - The global LV selling rate improved modestly to 86.6 million units/year, but the market declined 8.5% YoY due to a sharp contraction in the Chinese passenger vehicle market [5] Eastern Europe - In Eastern Europe, the LV selling rate slowed to 4.75 million units/year, with Russia's market declining 5.7% YoY to around 74k units [6] - The Turkish passenger vehicle market fell for the first time in a year, with sales totaling 70k units, down 8.2% YoY [6] China - China's passenger vehicle sales sank 32.5% YoY to 975k units in February, marking the lowest topline since April 2022 [7] - The YTD sales are down 24.9% YoY, with a monthly selling rate improving 28.9% MoM to 17.7 million units/year [7] Japan and Korea - Japanese LV sales fell by 3.8% YoY to 390k units in February, driven by a weak economic backdrop and rising financing costs [9] - Korean LV sales fell 6.2% YoY in February, but the selling rate rose to a five-month high of 1.78 million units/year [10] South America - Brazilian light vehicle sales totaled 177k units in February, up 2.0% YoY, with a selling rate of 2.82 million units/year [11] - In Argentina, sales totaled just under 40k units, down 4.9% YoY, but the selling rate accelerated to 555k units/year [12]