U.S. auto sales rose in the second quarter of the year, supported by steady demand for gasoline-powered vehicles and budget-friendly models, but industry experts warn that higher tariffs may put upward pressure on prices in the months ahead.
General Motors (GM) maintained its position as the top-selling automaker in the U.S. market, reporting a 7% increase in quarterly sales driven largely by strong demand for affordable crossover SUVs such as the Chevrolet Trax.
Ford Motor Company posted a notable 14.2% rise in quarterly sales, while Toyota’s North American division recorded a 7.2% gain. Hyundai Motor also reported a 10% year-over-year increase in U.S. sales for the same period.
The positive performance follows a wave of early demand as consumers sought to make purchases ahead of anticipated price increases linked to new tariffs. However, industry analysts expect that initial boost to taper off as the higher costs filter through the market.
Tariffs are likely to have a bigger impact on budget-friendly imported models, including Ford’s compact Maverick pickup and GM’s Trax, raising concerns over affordability as the average price of a new vehicle in the U.S. nears $50,000.
“Much of the pull-ahead demand that fired up sales in April and May has now been satiated, so consumer demand is expected to be weaker in the coming months,” said Charlie Chesbrough, senior economist at Cox Automotive.
According to Wards Intelligence, U.S. new vehicle sales in June totaled approximately 1.25 million units, with a seasonally adjusted annual rate of 15.34 million units.
Looking ahead, automakers and dealerships are preparing for potential challenges in the second half of the year. “The second half is going to be challenging. There’s a lot of headwinds out there. Interest rates are still very high, obviously you’ve got the political swirl,” said Randy Parker, CEO of Hyundai Motor North America.
Pat Ryan, CEO of the car-shopping platform CoPilot, noted that higher new vehicle prices are pushing more buyers to consider used cars, though he expects the used market will also present challenges for consumers seeking affordable options.
Industry observers continue to monitor how tariffs and other economic factors will shape sales trends and consumer choices through the remainder of 2024.
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