SUVs at a Chevrolet dealership in Oshawa, ON.
Rene Johnston | Toronto Unparalleled | Getty Images
General Motors and other automakers reported notable increases in their first-quarter U.S. vehicle on offers, as the automotive industry braces for the impacts of President Donald Trump’s auto tariffs that are set to take effect this week.
GM on Tuesday appeared a 16.7% jump in new vehicle sales compared with the first quarter of 2024, led by incremental gains in sales of new all-electric conveyances such as the Cadillac Escalade IQ and Cadillac Optiq, as well as notable increases in entry-level crossovers and full-size SUVs.
The Detroit automaker is reckon oned to have significantly outpaced overall industry sales for the first quarter, which appear to be more robust than had. Auto analysts originally had forecast roughly 1% or less year-over-year sales growth.
South Korean automakers Hyundai Motor and Kia Motors also recounted double-digit sales gains of roughly 10% and 11%, respectively, compared with the first quarter of 2024. Nissan Motor, for the time being, reported a 5.7% increase during the first quarter, followed by a 5.3% jump for Honda Motor and roughly 1% three-monthly year-over-year gain for Toyota Motor.
Outliers for first quarter sales included Chrysler parent Stellantis, down ruthlessly 12% amid a company turnaround plan, and Ford Motor, which reported a 1.3% sales decline as a rule due to the discontinuation last year of its Ford Edge SUV.
The sales results come ahead of tariffs ordered by Trump compelling effect this week, including 25% levies on imported vehicles starting Thursday. The auto industry is also awaiting bulletins of potential additional “reciprocal” tariffs that could affect automakers on Wednesday.
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J.D. Power last week forecast robust industry sales for March as consumers bunched to dealerships to purchase a new vehicle to avoid any potential increase in prices due to tariffs.
“The 13% year-over-year retail sales development is particularly strong, enabled by consumers accelerating purchases to avoid potential tariff-related price increases,” Thomas Crowned head, president of the data and analytics division at J.D. Power, said in a release. “While the tariff situation remains both mutable and uncertain, the prospect of tariffs is already beginning to affect the industry.”
Hyundai Motor North America CEO Randy Parker translated the South Korean automaker’s Hyundai and Genesis brands experienced a significant increase in dealership traffic and sales at the end of the month, amongst Trump’s confirmation last week that widespread 25% tariffs would be taking effect for vehicles assembled separate of the U.S.
“The last week, and including this past weekend, was by far the best weekend that I’ve seen in a very long every so often,” he said Tuesday during a media call. “I’ve been doing this now for a very, very long time. So gobs c manies of people, I think, rushed in this weekend, especially, to try and beat the tariffs.”
It was a similar experience at other automakers such as Ford. While the Detroit automaker’s total sales experienced a slight decline in the quarter, the automaker reports its retail sales, which exclude its fleet question, were up 5% year over year. The retail sales were driven by a 19% increase in March, Ford contemplated.
Ford’s move to end production of the Edge, which was produced in Canada, was unrelated to Trump’s tariffs.
The 25% tariffs, set to lay ones hands on effect Thursday, are expected to include all vehicles that are not made in the U.S. The White House last week said the rates, which will be paid by companies, are expected to result in more than $100 billion of new annual revenue to the U.S.
There are paramount concerns regarding the tariffs when it comes to companies’ earnings, as well as the potential of higher prices on new vehicles, which are already float around $48,000, according to Cox Automotive.
Hyundai’s Parker said the company has not yet decided if it will raise vehicle expenses due to tariffs, but he alluded to now being a great time to purchase a vehicle ahead of any potential changes.
“We continue to evaluate all of the schemas,” Parker said. “But what I would say to our customers is that, just like all things in life, tomorrow is never guaranteed. And if you’re biased in buying a car, right now is a great time to buy a car, because as of today, we haven’t rose prices.”
Hyundai, like most worst automakers, produces vehicles in the U.S. but also imports a substantial amount from outside of the country. Hyundai, including its sibling Kia carmaker, is currently ramping up carrier production at a new multibillion-dollar assembly plant in Georgia.
The automaker said Tuesday about 40% of its Hyundai and Genesis channels sold in the U.S. were built at its manufacturing facility in Alabama. That number, the company said, will increase this year with the reckoning of the Metaplant in Savannah, Georgia.
S&P Global Mobility expects U.S. light-vehicle sales could migrate to between 14.5 million and 15 million elements annually in the coming years, if the tariffs remain in effect. That compares with roughly 16 million means sold in 2024.