The inaugural Auto Industry Confidence Index by Automotive News shows automaker executives ranking just behind financial services leaders in confidence, with a sector score of 57.6 compared to 62.7, both above the neutral 50 mark.

While automakers view current business conditions positively, their outlook for the second half of 2025 is more cautious, with tariffs, shifting government policies, supply chain challenges, and competition—particularly from Chinese manufacturers—cited as key concerns.

Respondents voiced frustration over regulatory uncertainty, especially around EV mandates and subsidies, as well as the high cost of capital and planning difficulties amid constant policy shifts.

Though nearly 60% rated current retail demand as strong, many expect it to weaken in the coming months.

Industry leaders stressed that confidence would improve with stability, consistency, and clearer long-term policy direction, echoing analyst Jeff Schuster’s assessment that the industry faces “a pattern of chaos” with shifting variables that create both risk and uncertainty for the near and longer-term future.