Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 124

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 124
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, which is a modest 1.7% year-over-year
    growth in light vehicle sales.

    ●
    According
    to S&P Global Mobility and Edmunds, the US automotive sales of new vehicles in 2025 are expected to be around 16.2 million units,
    which is a 1.2% to 1.4% increase from 2024. This would be the highest annual sales figure since 2019.

    ●
    
    The
    annual inflation rate for the U.S. was 2.4% for the 12 months ending March 2025. (USinflationcalculator.com)

    ●
    The
    U.S. market remains strong and resilient for NetSol to continue investing in building local teams for its core offerings.

    ●
    According
    to recent forecasts, China’s auto sales in 2025 are expected to reach approximately 32.9 million units representing a 4.7%
    year-over-year increase. (China Automobile Manufacturers Association)

    ●
    The
    China Pakistan Economic Corridor (CPEC) investment, initiated by China, has exceeded $65 billion from the originally planned $46
    billion, in Pakistan’s energy and infrastructure sectors. In June 2024, China authorized a new $2.3 billion loan at a discounted
    rate to Pakistan as a short-term loan.

    ●
    
    The
    overall size of the mobility market in Europe and the United States is projected to increase over $425 billion combined, by 2035
    or a compound CAGR of 5% from 2022. (Deloitte Global Automotive Mobility Market Simulation Tool)

    ●
    
    The
    global automotive finance market accounted for $245 billion in 2022 and is expected to more than double by 2035 at a CAGR of 7.4%
    according to Precedence Research.

Page 38

Negative
trends:

    ●
    
    The
    conflict in Gaza has disrupted the entire Middle East region since October 7, 2023. The conflict has expanded to neighboring nations
    such as Syria, Lebanon and Iran. The unrest and turmoil in the region is viewed unfavorably by the regional business community.

    ●
    
    General
    economic conditions in our geographic markets; inflation, geopolitical tensions, including trade wars, tariffs and/or sanctions in
    geographic areas; and global conflicts or disasters that impact the global