February Sales Remain Steady Despite Storms; Future Sales Look Uncertain

New vehicle sales remained stable during February, but fallout from turmoil over Iran and around hangs over the economy.

With the threat of another conflict in the Middle East now hanging over the global auto industry, sales of new vehicles across the United States remained stable during February despite the severe winter storms in the Northeast.

Kia, Hyundai, Genesis, Honda and Toyota all posted modest sales gains during February, overcoming the harsh weather in the eastern half of the country last month, according to monthly sales reports.

Korean brands show strength in February

Kia America’s record-breaking streak continued into February with sales of 66,005 units, a 4% increase over February 2025. Sales of Kia’s hybrid models also reached a new February record, increasing 53% over the same period last year.

“Interest in the Kia brand throughout the U.S. is growing by leaps and bounds,” said Eric Watson, vice president, sales operations, Kia America. “Our diverse vehicle lineup continues to attract new customers as well as maintain repeat customers, trends that we fully expect to continue,” Watson added.

Hyundai reported sales increased 6%. It marked the third consecutive month of record total sales plus the brand’s total electrified sales climbed 56%, with EVs up 6% and hybrids increasing 79%, running against the market trend.

Genesis, the South Korean luxury brand, reported 3% increases in sales during February as South Korean brands continued to increase their overall share of the U.S. market.

MORE AUTO NEWS

• Iranian War Triggers Surge in Fuel Prices
• Honda to Follow Toyota, Exporting U.S.-Made Vehicles to Japan
• Ford’s Recall of 4M Trucks Underscores Growing Issue with Onboard Software

Japanese brands hang on

Honda brand eked out a modest gain of 0.6% YTD, driven aided by the record sales of hybrid-electric models and strong demand for SUVs and passenger cars. Passenger car sales totaled 29,490 units for an increase of 8.9% in February, led by the Civic with over 18,000 units and Accord at nearly 11,000 units.

The Acura brand posted its best February sales in five years, totaling 10,936 units, up over 17% YoY and up 10.8% in 2026.

Toyota Motor North America (TMNA) reported February 2026 U.S. sales of 180,950 vehicles, up 3.2% on a volume basis. Toyota Division sales for the month totaled 154,976 vehicles, up 3.3%. Lexus Division sales for the month totaled 25,974 vehicles, up 2.5%. TMNA’s also reported an 0.9% increase in electrified sales, representing 51.0% of total sales volume for the month.

Subaru of America Inc. today reported 45,113 vehicle sales, an 8.2% decrease. With a short selling month and severe storms impacting key, high-volume markets.

 

Future sales outlook uncertain

While February U.S. auto sales are projected to rebound from a slow January, new data from S&P Global Mobility indicates this recovery is deceptively weak and signals a cooling market ahead. The projected sales volume of 1.19 million units translates to a seasonally adjusted annual rate (SAAR) of 15.6 million, but this masks significant underlying challenges.

“We expect that auto sales in February should thaw somewhat from the chilly January 2026 result but remain modest,” said Chris Hopson, manager of North American light vehicle sales forecasting for S&P Global Mobility.

Meanwhile, the price of gasoline is beginning to increase on the heels of the U.S. war with Iran, which threatens to choke off oil shipments from the energy rich Persian Gulf. The Trump administration is attempting to head of an increase in gasoline prices at a time when surveys indicate consumer confidence is shaky.

A recent survey by The Washington Post-ABC News Ipso found many Americans believe homes, new cars and health care are out of reach. About 53% of adults reported they have “just enough” income to maintain their standard of living.