Executive Summary:
The U.S. auto market is poised for its strongest performance since 2019, with industry projections estimating new light-duty vehicle sales between 16.2 million and 16.3 million units in 2025. General Motors and Honda have already shown significant gains in Q4 of 2024, with General Motors leading a projected year-over-year increase of 18.5%.
Economic optimism following the 2024 election has bolstered consumer activity, but uncertainties remain. President-elect Donald Trump’s potential tariffs on Canadian and Mexican imports could disrupt the market, though experts believe any immediate impacts may be mitigated by pre-implementation demand.
The electric vehicle (EV) sector is set to achieve record-breaking sales in 2025, with 25% of all new auto sales expected to involve electrified models. Tesla continues to lead the EV space but faces growing competition from automakers like Hyundai and General Motors. Despite a slight decline in Tesla’s market share, its Model Y and Model 3 remain the top sellers.
Consumers considering a new car purchase, especially EVs, are encouraged to act quickly due to potential policy shifts under the incoming administration, which could impact federal EV tax credits. Industry experts advise taking advantage of current incentives before changes take effect.
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