Buyers worried about future price increase under Trump tariff plans kept dealers busy during April. But momentum is expected to sputter out when sanctions go into effect on May 3, potentially raising vehicle prices by thousands of dollars. Headlight.News has more.
New Trump tariffs are expected to raise all vehicle prices, driving down U.S. sales sharply for the rest of the year.
The surge in sales of new cars and trucks continued in April as customers raced to market hoping to beat the price increases expected once Pres. Donald Trump’s import tariffs go into effect May 3.
While not all manufacturers have yet weighed in on April results, those companies that did report saw double-digit gains. Only Subaru reported flat sales during April, in part due to declining inventories making it difficult for buyers to find the vehicles they wanted.
But Cox Automotive said momentum began to fade as May approached and dealer stocks continued to decline. It warned that demand could fall sharply in the months ahead.
Ford posts a big gain
Ford saw a drop in sales of EVs like this Mustang Mach-E.
Ford Motor Co, the only Detroit manufacturer to report sales every month, said on Thursday it recorded a 16% year-over-year increase in U.S. auto sales for the month of April. Ford reported monthly sales of 208,675 cars, compared to 179,588 units for the same period last year.
However, sales of electric vehicles bearing the Ford logo dropped in April by 39% to 4,859 units. But its hybrid vehicle gained 30% for the month, to 23,331 units, Ford said.
General Motors normally does not release monthly totals, but during an earnings call Thursday, Paul Jacobson, GM’s CFO, said sales were up 20% in May. It was GM’s best April since 2007, GM CEO Mary Barra added.
Honda posts healthy gains
The 2025 CR-V remained Honda’s best-selling product line.
American Honda sales totaled 137,656 units in April, with record sales of light trucks and electrified models. The surge was buoyed by the success of all-new products, like the next-generation Pilot SUV, as well as strong dealer inventories. Honda brand sales increased 16.6% for the month, 8.5% for the year to date. Passenger cars, light trucks and electrified models posted sales gains across the lineup.
The Honda CR-V continued to lead all Honda models in sales with 41,483 units for its best month of April ever, with hybrid sales mix over 53%.
Acura sales increased by 33% in April, the company reported.
More Industry News
- Trump Gives Some Tariff Relief to Automakers
- GM Reports Q1 Earnings
- Automakers Find Ways to Offset Tariffs
Toyota gains driven by hybrids, EVs
Toyota’s electrified models, including the Prius, drew strong demand in April.
Toyota Motor North America reported April 2025 U.S. sales increased 10.0%. The Toyota Division sold 197,871 vehicles during the month, up 7.9%. And the Lexus Division’s sales of 35,174 vehicles was a 23.5% gain. It also marked the division’s best-ever April.
The company’s sales of electrified vehicles rose 44.4%, representing 47.9% of total sales volume for the month.
Subaru of America, Inc. reported sales of 56,011 vehicle sales for April 2025, an increase of 0.3 percent compared with April 2024. Subaru also reported year-to-date sales of 222,968, a 6.8 percent increase compared with the same period in 2024.
South Koreans have a big month
The 2026 model just introduced in NY last month, the Hyundai Palisade was a big draw at dealerships.
South Korea’s Hyundai said April total sales increased 19%. It was the seventh consecutive month of total sales growth, and the Elantra N, Santa Fe, Tucson, Sonata, and Palisade all set April sales records.
“April total sales continued (the brand’s) upward trajectory with a 25% year-over-year increase in electrified vehicle sales, led by strong demand for the Tucson HEV,” said Randy Parker, president, and CEO of Hyundai Motor North America. He also noted strong demand for the second-generation Palisade SUV just formally debuted at last month’s New York Auto Show.
Sibling Korean brand Kia also reported strong sales during April. It delivered 74,805 total units in April, up 14% over the same period last year, achieving the highest-ever sales figure for the month of April. This record extended Kia’s record-breaking sales streak to seven months.
“We remain dedicated to further strengthening our product lineup,” said Eric Watson, vice president, sales operations, Kia America, noting that the brand has launched U.S. production of both its EV6 and EV9 battery-electric vehicles at the new assembly plant in Georgia it shares with Hyundai and Genesis.
Genesis, the Hyundai Motor Group’s luxury brand posted record sales of 6,307 units in April and increase of 15% from the previous year.
Automakers are expecting a sharp fall-off in demand in May as tariffs start driving up prices.
Analysts see more turbulence ahead
GM said it expects the tariffs to cost as much as $5 billion, though it expects prices to increase by only about 1%. CFO Jacobson expects demand to decline in the second half of the year from the blistering pace set in the March and April time period when the seasonally adjusted annual rate of sales soared towards seventeen million units.
S&P Global Mobility also has trimmed its 2025 sales forecast to 15.4 million units and to fifteen million units for 2026.
During a webcast with the Automotive Press Association on Thursday, Cox Automotive analysts had an even gloomier forecast, warning that if Trump policies trigger a recession – as many economists now fear – U.S. new vehicle sales could drop as low as 14 million for all of 2025.
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