SUVs at a Chevrolet dealership in Oshawa, ON.
Rene Johnston | Toronto Star | Getty Images
General Motors and other automakers reported notable increases in their first-quarter U.S. vehicle sales, as the automotive industry braces for the impacts of President Donald Trump’s auto tariffs that are set to take effect this week.
GM on Tuesday reported a 16.7% jump in new vehicle sales compared with the first quarter of 2024, led by incremental gains in sales of new all-electric vehicles such as the Cadillac Escalade IQ and Cadillac Optiq, as well as notable gains in entry-level crossovers and full-size SUVs.
The Detroit automaker is expected to have significantly outpaced overall industry sales for the first quarter, which appear to be more robust than expected. Auto analysts originally had forecast roughly 1% or less year-over-year sales growth.
South Korean automakers Hyundai Motor and Kia Motors also reported double-digit sales gains of roughly 10% and 11%, respectively, compared with the first quarter of 2024. Honda Motor, meanwhile, reported a 5.3% increase, while Toyota Motor reported a roughly 1% quarterly year-over-year gain.
An outlier so far is Ford Motor, which reported a 1.3% sales decline during the first quarter that was largely due to the discontinuation last year of its Ford Edge SUV.
The sales results come ahead of tariffs ordered by Trump taking effect this week, including 25% levies on imported vehicles starting Thursday. The auto industry is also awaiting announcements of potential additional “reciprocal” tariffs that could affect automakers on Wednesday.
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J.D. Power last week forecast robust industry sales for March as consumers flocked to dealerships to purchase a new vehicle to avoid any potential increase in prices due to tariffs.
“The 13% year-over-year retail sales increase is particularly strong, enabled by consumers accelerating purchases to avoid potential tariff-related price increases,” Thomas King, president of the data and analytics division at J.D. Power, said in a release. “While the tariff situation remains both fluid and uncertain, the prospect of tariffs is already beginning to affect the industry.”
Hyundai Motor North America CEO Randy Parker said the South Korean automaker’s Hyundai and Genesis brands experienced a significant increase in dealership traffic and sales at the end of the month, amid Trump’s confirmation last week that widespread 25% tariffs would be taking effect for vehicles assembled outside of the U.S.
“The last week, and including this past weekend, was by far the best weekend that I’ve seen in a very long time,” he said Tuesday during a media call. “I’ve been doing this now for a very, very long time. So lots of people, I think, rushed in this weekend, especially, to try and beat the tariffs.”
It was a similar experience at other automakers such as Ford. While the Detroit automaker’s overall sales experienced a slight decline in the quarter, the automaker reports its retail sales, which exclude its fleet business, were up 5% year-over-year. The retail sales were driven by a 19% increase in March, Ford said.
Ford’s move to end production of the Edge, which was produced in Canada, was unrelated to Trump’s tariffs.
The 25% tariffs, set to take effect Thursday, are expected to include all vehicles that are not made in the U.S. The White House last week said the tariffs, which will be paid by companies, are expected to result in over $100 billion of new annual revenue to the U.S.
There are major concerns regarding the tariffs when it comes to companies’ earnings, as well as the potential of higher prices on new vehicles, which are already hovering around $48,000, according to Cox Automotive.
Hyundai’s Parker said the company has not yet decided if it will raise vehicle prices due to tariffs, but he alluded to now being a great time to purchase a vehicle ahead of any potential changes.
“We continue to evaluate all of the scenarios,” Parker said. “But what I would say to our customers is that, just like all things in life, tomorrow is never guaranteed. And if you’re interested in buying a car, right now is a great time to buy a car, because as of today, we haven’t rose prices.”
Hyundai, like most major automakers, produces vehicles in the U.S. but also imports a substantial amount from outside of the country. Hyundai, including its sibling Kia carmaker, is currently ramping up vehicle production at a new multibillion-dollar assembly plant in Georgia.
Hyundai last week announced a roughly $21 billion investment in U.S. onshoring that includes a $5.8 billion steel plant in Louisiana.
