Summary of Global Auto Databook - June 03, 2025 Industry Overview - The report focuses on the global automotive industry, specifically analyzing sales trends, forecasts, and market dynamics across various regions including North America, Europe, Asia, and others [2][5][6]. Key Points and Arguments Global Sales Estimates - The report provides detailed sales estimates for light vehicles across different regions, highlighting significant growth and decline percentages over the years [5][6]. - For instance, in China, light vehicle sales are projected to grow from 21.0 million in 2022 to 21.6 million in 2025, reflecting a compound annual growth rate (CAGR) of 4.9% [5]. Regional Insights - **North America**: - U.S. light vehicle sales are expected to recover from 13.9 million in 2022 to 16.3 million in 2025, with a notable growth of 12.9% in 2023 [5]. - The market share of major OEMs like Ford and GM is analyzed, showing fluctuations in sales and inventory levels [12][14]. - **Europe**: - The report notes that European sales growth excludes light commercial vehicle (LCV) sales, indicating a focus on passenger vehicles [2]. - Total vehicle sales in Europe are projected to increase from 15.1 million in 2022 to 18.0 million in 2025, with a growth rate of 6.1% [5]. - **Asia**: - The Asian market, particularly China, is highlighted for its rapid recovery and growth potential, with sales expected to stabilize post-pandemic [5]. - Japan and South Korea show varied trends, with Japan's sales projected to recover slightly to 4.7 million by 2025 [5]. Market Dynamics - The report discusses the impact of national security on the automotive industry, suggesting that current geopolitical tensions may accelerate the adoption of AI in manufacturing and production processes [2]. - The transition to electric vehicles (EVs) is emphasized, with EV sales expected to grow significantly, from 7.6 million in 2022 to 12.4 million in 2025, marking a 59.7% increase [5]. Pricing and Inventory Trends - The analysis includes insights on gas prices and their impact on vehicle sales, noting a year-over-year decrease of 11.80% in gas prices as of April 2025 [16]. - Inventory levels are also discussed, with a significant reduction in days' supply for various vehicle segments, indicating a tightening market [12][14]. Financing and Leasing Trends - The report highlights trends in vehicle financing, noting an increase in the percentage of vehicles financed and leased, which reflects changing consumer preferences [19][20]. - The share of new vehicles that are leased has been steadily increasing, indicating a shift towards more flexible ownership models [19]. Additional Important Content - The report includes a variety of data sources, including Autodata and Morgan Stanley Research, ensuring a comprehensive analysis of the automotive market [2][5]. - It also addresses potential conflicts of interest due to Morgan Stanley's business relationships with covered companies, urging investors to consider this in their decision-making [2]. This summary encapsulates the critical insights and data from the Global Auto Databook, providing a comprehensive overview of the automotive industry's current state and future outlook.

Core Insights - Hyundai Motor Manufacturing Middle East (HMMME) has commenced construction of its manufacturing facility in King Abdullah Economic City, marking a significant development in Saudi Arabia's automotive industry [1][5] - The joint venture between the Public Investment Fund (PIF) and Hyundai aims to enhance local manufacturing capabilities and create skilled jobs in the region [5][7] Company Overview - HMMME is a joint venture with PIF holding a 70% stake and Hyundai holding 30% [4] - The facility will be Hyundai's first manufacturing plant in the Middle East, with an annual production target of 50,000 vehicles, including both internal combustion engine (ICE) and electric vehicles (EV) [4][6] Industry Impact - The establishment of HMMME is part of a broader initiative by PIF to position Saudi Arabia as a global player in the automotive sector, enhancing domestic manufacturing capabilities and infrastructure [7] - The new facility is expected to create thousands of jobs and facilitate knowledge transfer and skills development within the local workforce [5][6]