Quite a few automakers posted solid sales numbers for Q1 2025, especially GM and Hyundai. With the talk of tariffs affecting the price of cars and other goods, it seems a fair number of shoppers hurried up and bought new rides during the first quarter.
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GM was able to achieve a 17 percent increase in sales for the first quarter of this year versus the same period in 2024, which is honestly surprising. Hyundai Motor, which includes Hyundai, Kia, and Genesis, saw just over a 10 percent spike in sales for Q1 2025, reports The Washington Post, which attributes these increases to the threat of tariffs.
Starting on April 3, a 25 percent tariff on imported cars and vehicle components is supposed to go into effect. While the media is in large part panicking about this move, telling readers and viewers the economic sky is falling, many journalists seem to forget Trump is following through with what he promised on the campaign trail, meaning people literally voted for this.
The hope is automakers will move production stateside, transforming the United States from a consumer nation to one that produces goods like cars again. Interestingly enough, Hyundai is one automaker which already seems to be moving in that direction in a big way.
Another way to explain strong sales for certain automotive brands could be that consumers are shifting buying habits from some more expensive makes for more affordable options. As uncertainty with the economy grows, shoppers understandably are going to choose cheaper models perceived as reliable and inexpensive to maintain.
Although the Post noted Toyota’s sales grew just one percent for the first quarter. Not everyone perceives Toyotas as a deal, especially when looking at pure acquisition cost.
Meanwhile, Ford saw sales decline 1.3 percent.
Dealer and manufacturer incentives might have also played a role. But to deny the effects of constant reporting on coming tariffs would be naïve. Similarly, to attribute some automakers achieving high sales to a single factor is also probably missing the mark.
Image via Chevrolet