From Yahoo Finance: 2025-05-06 11:15:00

In 2025, S&P Global predicts global new light vehicle sales will increase by 1.7% to 89.6 million units, influenced by US policy changes. Industry experts anticipate challenges due to evolving government policies affecting EV demand, interest rates, trade flows, and BEV adoption rates, impacting the auto industry significantly.

President Trump recently introduced a two-year relief provision to alleviate industry criticism and lower escalating auto prices. This provision, affecting cars and parts, reduces tariffs and exempts vehicles with a high percentage of US, Canadian, or Mexican parts. The move aims to prevent decreased sales and increased service costs.

Ferrari N.V. (NYSE:RACE), known for its luxury sports cars, has shown strong performance in 2024. Selling 13,752 vehicles, the company’s revenue increased by 11.8% YoY to €6,677 million. UBS maintains a “Buy” rating on RACE, highlighting its strong brand, high-end demand, and positive outlook for 2025, particularly in racing operations.

The automotive industry faces challenges in 2025, with businesses vying for market share amidst changing consumer demands, regulatory changes, and economic conditions. Adapting to the evolving landscape through manufacturing technologies, software-defined vehicles, and electric vehicles will be crucial for success in this competitive market.

Read more: Is Ferrari N.V. (RACE) Among the Best Car Stocks To Buy In 2025?