US car buyers reverse major trend in second half of 2025

Core Insights - The U.S. auto industry is experiencing significant changes due to new tariffs imposed by the government, which have increased automotive import tariffs to 25% [3] - Ford has emerged as the top-selling brand in the U.S. during the first half of the year, with total sales rising at a rate seven times that of the overall auto industry [4] - Consumer interest in the auto industry has cooled in the second half of the year as incentive spending dwindled and car prices increased [6] Sales Performance - In the first half of 2025, car sales were strong, driven by pre-tariff demand and generous dealer incentives, with GM selling 2.83 million vehicles (+5.1% YoY) and holding a 17.3% market share [7] - Other brands also saw sales increases, with Toyota at 2.52 million vehicles (+8.4% YoY) and Ford at 2.18 million vehicles (+5.6% YoY) [7] - The overall market is showing signs of weakness, with expectations for December sales to finish near 15.9 million, down from 16.8 million in the previous year [8] Market Dynamics - Automakers are providing healthy incentives to maintain sales despite rising prices, indicating sufficient demand in the market [5] - The pressure from the government to keep prices stable has led to a rush in vehicle purchases before the tariff impacts are fully realized [3] - As the year progresses, the combination of increased prices and reduced incentives has led to a decline in consumer interest [6]