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US Auto Sales Defy Chaos, Hit 2% Growth in 2025
5 Jan
Summary
- New car sales in the U.S. increased by approximately 2% in 2025.
- Supply chain issues and shifting EV tax credits impacted the automotive industry.
- Affordability remains a significant barrier for many potential car buyers.
New car sales in the United States saw an estimated 2% increase in 2025, with approximately 16 million vehicles sold. This growth occurred despite significant industry disruptions, including supply chain challenges and fluctuating electric vehicle tax credits. Gas-powered trucks, SUVs, and hybrids were key drivers of this demand, as some consumers purchased vehicles before potential price increases due to regulatory changes.
Affordability continues to be a major concern, with many price-sensitive shoppers unable to afford new vehicles due to elevated monthly payments. The electric vehicle market experienced considerable volatility, with a notable decrease in consumer demand following the removal of a substantial tax credit. Automakers like General Motors, Ford, and Stellantis have scaled back or canceled major EV production plans, incurring significant financial charges.
Looking ahead to 2026, analysts have mixed outlooks. Some predict a decline in sales due to economic uncertainty and tariff-related costs, while others anticipate a more balanced market with the potential for stronger performance. Factors such as likely interest rate reductions and a rise in vehicle leases are expected to buoy demand and restore stability.
