Overview: Effective April 3, 2025, the US implemented a 25% tariff on imported passenger vehicles and light trucks. In addition, the previously scheduled 25% tariff on key automotive components, including engines, transmissions, powertrain parts, and electrical systems, came into effect on May 3, 2025. To cushion the impact on domestic manufacturers, the administration introduced relief measures aimed at supporting US automakers. Given the evolving market conditions, we are revising down our 2025 global passenger vehicle (PV) and electric vehicle (EV) sales forecast from the February update. This downward adjustment reflects a range of potential tariff scenarios and their corresponding macroeconomic implications.