Nine months of strong sales helped buoy the U.S. auto industry for much of 2025, but headwinds from swirling tariff policies and the expiration of a substantial federal tax credit for new electric vehicles (EVs) at the end of September led to a slump in sales in the fourth quarter.
Automakers will sell a projected 16.3 million vehicles in 2025, the best sales year since 2019; however, manufacturers are expected to see a 2.4 percent overall decline to approximately 15.8 million new auto sales in 2026, Cox Automotive said on Dec. 17 in its most recent industry forecast.
This year has been an up-and-down journey for U.S. automakers. Sales surged in the first quarter, as buyers raced to beat tariff-induced price hikes, Cox said, and they remained strong throughout the summer and fall as consumers rushed to buy ahead of the expiration of a $7,500 clean vehicle tax credit under President Donald Trump’s One, Big, Beautiful Bill….