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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 & NSANY
U.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).