Cookies utilized by Autovista24 for an enhanced user experience
The global automotive industry is currently navigating turbulent waters in 2025, with shifting tariffs and economic uncertainty looming large[1]. One significant development is the 25% tariff on all foreign-built cars and light trucks announced in April, which has disrupted industry forecasts and supply chains[1][2].
In the U.S., the tariff has led to a surge in sales among domestically focused automakers, such as Ford and General Motors, as consumers rushed to buy before prices increased, creating a so-called “Trump Bump”[2]. However, automakers heavily reliant on imports, like Volkswagen and Stellantis, have seen significant sales declines[1][2].
In Europe, Germany, with a strong U.S. export presence, is identified as the EU country most exposed to these tariffs[4]. The potential long-term economic impact could reduce German GDP by about 0.4%, while France and Spain, with less direct exposure, still face indirect impacts through weaker global demand and supply chain ripple effects[4]. For smaller European economies integrated into German supply chains, such as Austria and some in Central and Eastern Europe, the effects could also be significant[4].
While the impact on Europe’s used-car market is not explicitly detailed, increased new-car supply and export disruptions suggest possible downward pressure on used-car prices, though consumer behavior could also shift toward greater used-car demand due to economic uncertainty[4].
In the midst of these changes, the Heycar marketplace division, launched in 2017 with backing from VWFS, Daimler Mobility, and Volkswagen, is being wound down[5]. Major manufacturers have welcomed the president's move, as it allows carmakers to offset some costs and avoid layered duties[3]. Volkswagen is believed to have invested around €300 million in the division since its launch[6].
Heycar initially launched as a classified marketplace but later introduced e-commerce options for customers[7]. It entered the UK in 2019 and positioned itself as a competitor to established players[7]. VWFS will absorb Heycar's technology and expertise into a newly formed subsidiary[5].
Industry forecasts for light-vehicle sales have dimmed, with the outlook for North America dropping to 17.67 million units[1]. Europe is expected to see growth of just 0.15% in light-vehicle sales[1]. EV Volumes has cut its 2025 light-vehicle sales growth projection to 1.2%, down from 1.9% in March[1].
As the industry adapts to these changes, it remains to be seen how the global light-vehicle market and used-car market will evolve in the coming months and years.
References: [1] https://www.autonews.com/regional-news/europe/article/20250401/AUTOREPORTS/330728161/global-forecasts-dim-as-europe-braces-for-tariff-impact [2] https://www.autonews.com/regional-news/north-america/article/20250401/AUTOREPORTS/330727678/trump-tariffs-disrupt-global-automotive-industry-forecasts [3] https://www.autonews.com/regional-news/north-america/article/20250401/AUTOREPORTS/330727794/us-tariffs-to-boost-consumer-prices-by-21-percent-says-study [4] https://www.autonews.com/regional-news/europe/article/20250401/AUTOREPORTS/330728012/germany-leads-eu-exposure-to-us-tariffs [5] https://www.autocar.co.uk/business/news/volkswagen-to-close-down-heycar-used-car-platform [6] https://www.autocar.co.uk/business/news/volkswagen-to-close-down-heycar-used-car-platform [7] https://www.autocar.co.uk/business/news/volkswagen-to-close-down-heycar-used-car-platform
In the global financial landscape, the disruption caused by tariffs in the automotive industry could potentially impact investment opportunities within the sector, as evidenced by the tariff-induced surge in sales for domestic automakers and subsequent declines for foreign automakers. In addition, economic uncertainty might prompt changes within the online automotive marketplaces, as demonstrated by the winding down of Heycar, a venture originally backed by major automotive players.
