The US auto industry saw a surge in sales last month as consumers rushed to purchase vehicles ahead of President Donald Trump’s new tariffs on imported cars and parts.
Several major automakers reported sharp increases in sales for March, as buyers sought to avoid the price hikes expected once the tariffs take effect.
“This past weekend was by far the best weekend I’ve seen in a very long time,” Randy Parker, the chief executive of Hyundai Motor North America, told reporters on Tuesday.
The company reported a 13% increase in March sales on Monday compared with a year earlier.
Ford Motor Company saw an even bigger jump, with a 19% rise in March sales at dealerships.
However, the company’s overall first-quarter sales dropped by 1% to about 500,000 vehicles due to weaker fleet sales.
General Motors did not disclose a separate figure for March, but its first-quarter sales rose 17% year-over-year, reaching 693,000 vehicles.
The rush to buy comes ahead of Trump’s planned 25% tariff on imported vehicles, set to take effect on Thursday.
The tariffs will extend to imported auto parts on May 3, posing a challenge even for cars assembled in the US, as many contain foreign components that make up more than half of their total value.
Analysts predict price hikes of over $10,000 for some models as automakers adjust to the new levies.
It’s basic #economics that #tariffs are inflationary. US auto production + imports is meeting demand. US production can’t make up for tariffed cars. Prices go up. (Chart: Statista statista.com/chart/34204/do…)
EVs and hybrids gain momentum
As overall sales climbed, electric vehicles (EVs) and hybrids experienced particularly strong growth, while traditional internal combustion engine (ICE) vehicles saw more modest increases or outright declines.
General Motors reported that its EV sales nearly doubled to 32,000 units in the first quarter, driven by the launch of the electric Equinox SUV, one of the most affordable EVs in the US market at a starting price of around $35,000.
Toyota saw hybrid and EV sales surge 44% in March to 113,000 units, making up nearly half of its total sales.
While Toyota remains dominant in the hybrid segment, its fully electric vehicle presence remains relatively small.
Ford said its hybrid sales rose 33% in the first quarter, while EV sales, including the Mustang Mach-E, climbed 12%.
Meanwhile, sales of ICE-powered cars dropped 5%.
Hyundai reported a 68% jump in hybrid sales, while EV sales edged up 3%.
BMW saw a 26% rise in EV sales, contributing to a 4% overall increase in its US sales for the first quarter.
Uncertainty looms over future pricing
Despite the strong March performance, automakers remain uncertain about how tariffs will impact their pricing strategies.
Hyundai and Kia, which operate factories in Georgia and Alabama, still import a significant number of vehicles from South Korea.
Mercedes is considering withdrawing its least expensive cars from the US because President Trump’s auto tariffs would likely make their sales economically unfeasible. Kailey Leinz reports bloom.bg/3XEmSc5
“We haven’t made any firm decisions yet,” Parker said.
However, he advised potential buyers not to wait, adding, “Don’t wait to buy tomorrow what you can buy today.”
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