US Auto Sales Expected to Rise 2.5% in 2025

Industry analysts predict that new auto sales in the US will increase by 2.5% or less in 2025, driven by normalization of vehicle inventories, increased incentives and discounts from automakers, and easing financing and loan rates.

The expected sales gain is attributed to a more affordable market for consumers, with entry-level vehicles and electrified models expected to see significant growth. All-electric vehicle sales are forecast to set another record in 2024, with total sales volume near 1.3 million, marking roughly an 8% market share.

While Tesla’s sales are expected to decline for the first time since 2014, other manufacturers such as Hyundai Motor Group and General Motors will see significant gains in market share. Cox expects 25% of new vehicle sales to be electrified in 2025, with all-electric models making up over 10%.

However, analysts warn that regulatory uncertainty, including potential tariffs on Canadian and Mexican production, could impact the industry. The expected increase in US auto sales may also lead to lower earnings for automakers due to higher incentive rates and declining pricing.

Source: https://www.cnbc.com/2024/12/18/2025-us-auto-sales-forecast.html