U.S. Vehicle Sales Rise in Q1: A Boost Before Trump Tariffs Kick In?

U.S. President Donald Trump’s imposition of 25% tariffs on imported cars and parts will take effect tomorrow. That’s expected to throw the supply chain system into disarray and lead to increased cost of vehicles, resulting in affordability challenges and derailing demand.But in the first three months of 2025, the deliveries were rather strong. They were likely driven by consumers rushing to dealerships to secure a new vehicle ahead of potential tariff-driven price hikes. This was particularly evident from robust sales volumes for the month of March. Cox Automotive estimates March's seasonally adjusted annual rate to be 15.9 million units, suggesting a 0.2 million increase from last year's figure.Q1 U.S. Deliveries of GM, TM, HMC, F & NSANYU.S. legacy automaker General Motors GM sold 693,363 units in the first quarter of 2025, up 17% year over year. It posted double-digit gains across its key brands— Chevrolet (up 13.7%), GMC (up 17.6%), Cadillac (17.8%) and Buick (39.3%). General Motors dominated the U.S. auto industry for the quarter, leading in total, retail and fleet sales. GM’s retail sales surged 15%, marking its best first-quarter since 2018. Electric vehicle (EV) sales were up 94% to 31,887 units, with General Motors being the #2 seller of EVs in the country.Japanese auto biggies Toyota TM, Honda HMC and Nissan NSANY reported a 1%, 5.3% and 5.7% rise in vehicle sales, respectively, in the United Sales. Toyota sold 570,269 vehicles, with electrified vehicles (including hybrids, plug-in hybrid EVs and fully EVs) accounting for 50.6% of the total. While the namesake division reported sales of 487,226 units, the Lexus division hit a record 83,043 deliveries. This was the best-ever quarterly sales of Lexus. Honda reported sales of 351,577 units, with the namesake division selling 320,811 units and Acura delivering 30,766 vehicles. Electrified sales (hybrids and EVs) totaled 110,022 units, up 77%. Nissan reported sales of 267,085 units. Strong sales across the lineup, including Versa, Leaf and Kicks, contributed to growth.GM’s closest rival Ford F was an outlier, with sales declining 1.3% during the first quarter of 2025 to 501,291 units. The drop was mainly due to the timing of rental fleet sales and the discontinuation of the Ford Edge and Transit Connect. However, retail sales grew 5% during the quarter. Sales of Ford’s electrified vehicles, including EVs and hybrids, jumped 25.5% to 73,623 units.Toyota, Honda, Nissan and General Motors carry a Zacks Rank #3 (Hold) each. Ford currently has a Zacks Rank #5 (Strong Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks hereRough Road AheadWhile U.S. vehicle sales saw a resilient start to 2025, the industry faces an uncertain future due to tariffs. With new vehicle prices already near $48,000, additional costs from tariffs could push prices even higher. This would put more pressure on consumers already dealing with inflation.Trump’s tariffs are expected to add thousands of dollars to the price of vehicles. While imported cars will become more expensive, even U.S.-made vehicles could see price hikes due to rising parts costs and supply chain disruptions. Automakers may pass these costs to buyers, leading to weaker sales. Higher prices could also force automakers to reduce production.S&P Global Mobility predicts that U.S. vehicle sales in 2025 may decline to 14.5–15 million units if tariffs remain in place, down from 16 million in 2024. Economic uncertainty, affordability challenges and inflation concerns are likely to dampen demand in 2025, making the road ahead tough for both consumers and automakers.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ford Motor Company (F): Free Stock Analysis Report Toyota Motor Corporation (TM): Free Stock Analysis Report Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report Nissan Motor Co. (NSANY): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks