In March, major automobile companies in the United States experienced a notable surge in sales, with many reporting growth in double digits. This uptick in March helped compensate for a slower start seen earlier in the year. Automakers managed to sell around 1.6 million vehicles in the U.S. during March, marking a 13.6% increase, which elevated the total sales for the first quarter to over 3.9 million vehicles. A significant contribution to these numbers came from the considerable rise in electric vehicle sales.
However, the future remains uncertain for the auto industry following President Donald Trump’s announcement of 25% tariffs on auto imports. These tariffs, which will be enforced starting April 3, are set to expand to include applicable auto parts over the subsequent weeks, extending until May 3. These increased tariffs could impose higher costs on automakers and possibly impact sales negatively, although the President argues it will encourage more factory openings within the U.S.
According to industry analyst Sam Abuelsamid from Telemetry Insight, the highs in March could be attributed to some anticipatory buying ahead of the tariff impact, though limited by concerns over affordability and persistently high interest rates.
Breaking down individual companies’ performances shows varied results:
**General Motors (GM)** reported a 17% rise in U.S. sales in the first quarter, bolstered by demand for full-size pickups and SUVs. Chevrolet sales increased by 14%, marking its best quarter since 2019, while GMC experienced an 18% growth, reaching a new high with near-tripled sales of electric vehicles.
**Ford Motor Company** achieved a 10% increase in March sales, primarily driven by the strong performance of the F-150 pickup and electric vehicles. Nevertheless, total sales for the first quarter reduced by 1%, partly due to fewer sales to rental car companies and discontinuation of particular models. Electric and hybrid vehicles comprised approximately 15% of Ford’s total sales for the quarter.
**Toyota Motor North America** saw U.S. sales rise by 7.7% in March, with electric vehicle sales surging by 44.1%, almost accounting for half of the month’s overall sales volume. For the first quarter, total sales increased marginally by 0.9%.
**American Honda** experienced a 13.2% rise in March sales, driven by their light trucks achieving record sales. Electrified vehicles saw a remarkable 89.1% increase in March, making up nearly a third of total vehicle sales. Overall, the first quarter saw a 5.3% rise in sales due to increased truck sales counterbalancing declines in car sales.
**Nissan** recorded a 5.7% rise in total sales in the first quarter, buoyed by the popularity of the Sentra sedan and the Kicks compact crossover. Moreover, sales of the Leaf electric vehicle doubled over the quarter.
**Hyundai Motor America** achieved a 13% boost in sales during March, led by the Tucson and Santa Fe SUVs alongside the Elantra Sedan. Overall for the first quarter, sales increased by 10%, with hybrid-electric vehicle sales soaring by 68%.
Lastly, **Kia America** reported a 13.1% rise in March sales and a 10.7% increase for the first quarter.