The US auto market strengthened in August, with sales up 2.1% year-on-year, led by GM, Ford, and Toyota. Policy also turned supportive, as President Trump signed an order reducing tariffs on Japanese cars from 27.5% to 15%, offering relief to Japan’s automakers.

Asia and Europe diverge
In Asia and Europe, the picture is more nuanced. China continues to anchor global EV growth, with electrified vehicles taking more than half the market, while Japan’s temporary slowdown follows strong gains earlier in the year. In Europe, Germany posted healthy growth on the back of EV adoption, and industry debate around the 2035 combustion engine ban suggests regulatory frameworks may evolve in ways that keep demand more balanced across technologies.

Outlook for PCTC
For the PCTC market, this mix of robust US sales, sustained Chinese EV momentum, and gradual policy adjustments in Europe should continue to underpin solid volumes. With demand drivers broadly intact and policy winds turning more favourable, charter activity and utilization rates are expected to remain strong into Q4, supporting earnings visibility and a stable rate environment for owners. While there was virtually no fleet growth in the PCTC sector from 2013 through 2023, the fleet is now growing strongly with a large number of newbuild deliveries coming into the market in 2026 and 2027. An increase in PCTC vessels may challenge vessel utilization in the long-term.