The U.S. new vehicle market ended on a high note for 2025. But a closer look reveals how rising prices and tariffs and other trade-related issues are beginning to exert downward pressure as we enter the new year. Headlight.News has more.
The latest numbers show that more buyers are facing affordability issues.
Major manufacturers including General Motor, Toyota, Hyundai, Kia and Honda all posted sales increases for 2025, but Subaru joined Tesla and Stellantis in losing ground in 2025 as sales overall showed signs of weakening in the fourth quarter. December revealed some real red flags, automakers propping up demand by pouring millions of dollars into year-end advertising and promotions.
Reuters estimated U.S car sales grew by 2% for all of 2025 while analysts within the industry calculated the total for the year reached 16.6 million vehicles.
But affordability issues are clearly raising concerns. Edmunds, estimated one in five new car buyers spent more than $1,000 per month to cover the cost of their new vehicles in the final weeks of 2025. With carmakers facing increasing political heat over rising prices, it was no surprise manufacturers like GM, Toyota and Hyundai stressed the strength of their sales of lower-priced models in year-end sales reports.
GM has a strong year
GM appears to have led the U.S. auto industry in sales in 2025, reporting a 6% increase for the full year. The Chevrolet Silverado and GMC Sierra pickups recorded their best combined sales in 20 years. GM led the full-size SUV market for the 51st consecutive year. GM was the industry’s second-best EV seller in 2025, behind only Tesla.
All four GM brands grew in 2025. GMC set a new sales record for the second consecutive year. Cadillac sales were the best in a decade. Chevrolet’s lineup of SUVs had their best sales ever. And Buick was one of the industry’s fastest-growing mainstream brands, the company reported. “Demand for our brands and products is strong at every price point, and we are well‑positioned to build on this momentum in the year ahead,” said Duncan Aldred, GM senior VP and president of North America.
However, GM’s sales in the fourth quarter declined 7% compared to the same period in 2024, the company said. But GM emphasized it sold sold nearly 700,000 Chevrolet and Buick models with starting prices below $30,000.
Stellantis attempts a comeback
At Stellantis, which has seen its market share slide away in the past couple of years months, executives were encouraged by the growth of sales during the second half of 2025.
The increase was led by Jeep and also got a boost from the Dodge and Chrysler brands, according to the company’s year-end sales report. For the full year, though, Stellantis sales in the U.S. declined by 3%.
Jeff Kommor, head of U.S. retail sales at Stellantis, said, “There is still work to do, but we made progress this year with a diversified powertrain lineup, highlighted by the return of the Hemi to the Ram 1500, the all-new Jeep Cherokee hybrid and the all-electric Jeep Recon. We ended 2025 on a high note and will keep that momentum in 2026.”
“With consecutive quarterly sales increases and market share growth, it’s clear that we are taking the right steps to reset our business in the U.S.,” he added.tk
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Toyota maintains momentum while Subaru reports rare slide
Toyota Motor North America trailed GM in total sales for the calendar year, but Toyota brand vehicles reported an 8.1% sales increase while Lexus sales grew by 7.1%.
“We’re grateful for the strong response from our Toyota customers in 2025, which reflects our deep commitment to affordability and choice,” said Andrew Gilleland, senior vice president, Automotive Operations Group, Toyota Motor North America. “The success of iconic top-sellers like the Camry and Corolla, alongside a broad lineup of vehicles starting under $30,000, shows that customers value having accessible options” he added.
Subaru, however, reported a sales decline of 3.6% for 2025 and a 7.2% drop in December. It was a rare setback for the Japanese brand and came despite the launch of several new products, including a new Outback.
American Honda posted small sales increases for both the Acura and Honda brands in 2026. But both Honda and Acura-brands sales fell in December when the company appeared to have problems with suppliers of critical components.
South Korean companies take a larger slice of U.S. market
Hyundai and Kia posted solid gains during 2025, for Kia the gains carried over into December.
Kia America posted total sales of 852,155 units in 2025, surpassing the 800,000 mark for the first time in company history and representing a 7% increase over 2024. This is the third consecutive year Kia has set a new all-time annual sales record. In addition, this marks the brand’s highest-ever U.S. market share.
“Our third consecutive all-time annual sales record, coupled with our highest-ever U.S. market share, are clear indicators of the strength of the Kia brand and the competitiveness of our models,” said Sean Yoon, Kia North America CEO. “And with the second-generation Telluride and the highly anticipated K4 hatchback arriving in showrooms in the first quarter, and more new products on the way, we expect this positive momentum to continue into the New Year and beyond.”
Meanwhile, Hyundai also closed out 2025 with an 8% sales increase, although sales faltered in the fourth quarter declining by 1%.
Hyundai Motor Group Executive Chair Euisun Chung has warned of a tough year ahead for the global auto industry, according to Bloomberg. Chung said that global trade tensions and intensifying competition would curb industry profitability, while geopolitical conflicts may impact operations in some regions, potentially leading to a suspension of business. “This will be the year when the crisis factors we have long worried about become reality,” Chung said.
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