Sales of new vehicles in the U.S. climbed sharply during March as buyers rushed to get in their orders before the tariffs clamp down on the automotive trade. The threat of a recession is also expected to weigh on an industry sensitive to economic trends going into April.
With President Donald Trump’s new import tariffs expected to add thousands to the cost of new vehicles – including domestic models dependent upon foreign-made parts and components, buyers flooded into showrooms during March, helping boost sales right as the countdown to April 2 wound down.
The tariffs are expected to boost the price of essentially all vehicles sold in the U.S., according to industry analysts, Anderson Economic Group estimating the typical SUV will go up by $4,000, and higher-end models could see price hikes of over $20,000.
General Motors, Toyota, Honda, Nissan, Subaru, Hyundai and Genesis all reported increased sales for March and for the entire first quarter as consumers, despite faltering confidence, moved to buy ahead to avoid the Trump administration’s tariffs. There were a few exceptions. Ford said its overall sales dropped by 1%, but retail sales climbed 5% and surged in March.
GM posts hefty gain on strength in trucks, SUVs, and EVs
General Motors reported its U.S. sales increased 17% in the first quarter, with double-digit increases across all four of the company’s brands.
GM continues to be the market leader in full-size pickups and SUVs, and expects to again be among the leaders in the sales of electric vehicles in the U.S. with sales up 94% in the quarter.
“GM’s sales growth outpaced every other major automaker, and the driving force is our portfolio,” said Rory Harvey, GM executive VP and president of global markets. “We’re the industry leader in trucks and affordable small SUVs, Cadillac is growing significantly in luxury, and we have the broadest portfolio of EVs in the industry.”
Ford Truck enjoys strong month
Ford Motor Company was a rare exception, posting a 1% decline overall in Q1 sales. But its U.S. retail volume rose 5% in the first quarter propelled by a 19% retail increase in March. Sales of its F-Series pickups, America’s best-selling vehicle line, grew 24%, and the company’s electrified vehicle sales started the year totaling a record 73,623 in the first quarter – up 26% – led by a strong start for both hybrids and all-electric models — up 33% and 12% respectively. Sales of E-Transit, America’s best-selling electric van rose 30%, totaling 3,756.
Sales of off-road performance vehicles grew 20% in the first quarter, led by a 35% increase in Bronco sales, Additionally, Ford Pro Intelligence software platform subscriptions, based on end-of-quarter estimates, up about 20% year-over-year with approximately 674,000 active subscriptions Overall, however, total Ford sales for the quarter decreased 1% year over year mainly due to daily rental fleet sales timing and lost volume from the discontinuation of the Ford Edge and Transit Connect.
Toyota enjoys healthy month
Toyota Motor North America reported a 7.7 % sales increase on a volume basis and up 11.8% on a daily selling rate basis versus March 2024. Sales of electrified vehicles for the month totaled 112,608, up 44.1% on a volume basis and up 49.6% on a DSR basis representing 48.7 percent of total sales volume. For the first quarter,
For the first quarter, TMNA reported sales of 570,269 vehicles, up 0.9 percent on a volume basis and up 3.6 percent on a DSR basis versus the year ago period. Sales of electrified vehicles for the first quarter totaled 288,796, up 39.6% on a volume basis and up 43.3% on a DSR basis representing 50.6% of total sales volume.
Toyota division posted March sales of 196,240 vehicles, up 6.6% on a volume basis. For the quarter, Toyota division reported sales of 487,226 vehicles, up 0.1% on a volume basis and up 2.8% on a DSR basis. The Lexus division posted March sales of 35,095 vehicles, up 14.15 on a volume basis. For the quarter, Lexus division reported its best-ever result with sales of 83,043 vehicles, up 5.8% on a volume basis and up 8.6% on a DSR basis.
“We continue to see steady sales from our Toyota and Lexus brands due in part to improved inventory levels and new models like the Toyota 4Runner and Lexus LX hybrid,” said Mark Templin, executive vice president and chief operating officer, TMNA. “We’re also seeing our sales mix of electrified vehicles increasing as our diverse portfolio of 32 electrified vehicles continue to grow and satisfy the needs of our customers while reducing emissions as much as possible, as quickly as possible.”
Honda, Nissan, Subaru all post gains

Depending upon final rules set by the U.S. Commerce Dept., some Mexican-made entry models, like this Honda HR-V, could be priced out of the market for many budget buyers.
American Honda reported March sales of 147,792 up 13.2%, while first quarter sales totaled 351,577 as sales momentum continues, and light trucks set an all-time sales record of 108,466. Sales of Honda’s hybrids and EVs set a record in March of 45,831 units and best for the quarter with 110,022 units sold during the first three months of 2025.
Nissan sales in the U.S. market increased by 5.7% in the first quarter as Nissan brands sales climbed 6.3%. But Infiniti sales dropped by 5.3%. Sales of the Nissan Versa sedan were up 156% year-over-year for the quarter, while sales of the Nissan Leaf electric sedan were up 103.4% year-over-year for the quarter.
Subaru of America reported 71,478 vehicle sales for March 2025, a 16.6% increase compared with March 2024. March 2025 marked the best-ever sales month in the history of the company, topping the current record set in August 2019. SOA also reported year-to-date sales of 166,957, a 9.1% increase compared to the first quarter of 2024. March marked the 32nd consecutive month of month-over-month sales increases for the automaker.
South Korean Automakers enjoy strong sales
Hyundai’s March total sales increased 13%, which was the sixth consecutive month of best-ever total sales. Hyundai also set new records for total and retail sales records with volumes climbing 10%. Hyundai also set an electrified-vehicle sales record, demand for products such as the Ioniq 5 increasing by 38%.
Kia America delivered 78,540 total units in March, extending its record-breaking sales streak to six months and propelling the fast-growing brand to the best first quarter performance in company history.
In the first quarter, Kia achieved total sales of 198,850 units, marking a 10.7-percent increase over Q1 2024 and setting a record for the highest first-quarter performance in its history. In particular, the all-new K4 compact sedan, which has shown consistent growth since its launch in August last year, contributed to Kia’s record-breaking Q1 performance by achieving a 10-percent increase in sales compared to the same period last year.
Will the bottom fall out in April?
A Ford spokesman said it was “difficult to pinpoint a specific reason” for the March sales surge, but dealers who spoke to Headlight.News in recent days said they have heard buyers repeatedly bring up the subject of the Trump tariffs which will add 25% to the price of many, if not all, vehicles assembled outside the United States.
The administration is still working out final details regarding the dozens of vehicles, and countless auto parts and components, assembled in neighboring Canada and Mexico as it determines how they are covered by the USMCA trade agreement. But there is widespread agreement among industry analysts and executives that few, if any, models sold in the States will escape without higher prices.
Despite the healthy sales in the first quarter, Cox Automotive has slashed its overall sales forecast for 2025 because of the uncertainty created by the tariff threat and as the prospects for a recession increase, according to various economic analysts.
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