Automakers have resisted raising car prices because of tariffs. That might not last

Core Insights - Automakers have absorbed billions in added expenses due to U.S. tariffs, avoiding significant price increases for consumers so far [1][3] - The average MSRP of new vehicles in the U.S. rose less than 1% from mid-March to mid-August, with modest price increases continuing into the autumn [2] - Analysts predict that as tariffs remain, carmakers will face pressure to raise prices, with General Motors and Ford estimating tariff-related costs of up to $5 billion and $3 billion respectively [3] Pricing Trends - Car brands implemented a 3.3% increase in average sticker prices in August, which aligns with historical averages despite being higher than last year's increase [2] - Average transaction prices for vehicles have risen about 30% since 2019, reaching $49,077, indicating a significant price increase trend in the market [4] Competitive Strategies - Hyundai North America is maintaining pricing to remain competitive, despite facing a $600 million hit to its bottom line due to tariff costs [5] - Tariff-related costs are estimated at nearly $2,300 per vehicle on an annualized basis, suggesting that carmakers may need to raise prices in the second half of the year to protect profitability [6]