U.S. car sales grew despite challenging market conditions

The U.S. new-car market demonstrated stability in 2025 despite significant legal and economic challenges. Sales of passenger cars and light trucks increased by around 2% compared with the previous year, reaching approximately 16 million units. This result came as a surprise given changes in government policies, ongoing pressure on supply chains, and revisions to buyer support programs.

The key driver of growth was steady demand for traditional ICE vehicles as well as hybrid models. SUVs, off-road vehicles, and pickup trucks sold particularly well, remaining the most popular choices among American buyers. These segments largely compensated for weakening interest in EVs, demand for which declined following the cancellation of the federal $7,500 tax credit.

Major automakers showed mixed sales dynamics. Toyota and Hyundai recorded notable growth in the U.S., driven by a focus on more affordable models and expanded hybrid lineups. General Motors also improved its results, relying on strong positions in the full-size SUV and pickup truck segments. At the same time, some manufacturers – such as Stellantis – faced a decline in sales amid internal restructuring and lineup adjustments.

Analysts note that some buyers accelerated their purchase decisions amid concerns over potential price increases due to new tariffs, changes in environmental regulations, and further regulatory tightening. Expectations of interest-rate shifts and reduced incentives also acted as additional motivators.

Despite the positive momentum, the market continues to face affordability challenges. High new-car prices and rising monthly loan payments are limiting demand among middle-income households. This issue remains a key topic of discussion among automakers, dealers, and regulators.

Outlooks for 2026 remain mixed. Some experts anticipate a market slowdown driven by economic uncertainty and rising costs, while others believe that stabilizing interest rates and an influx of vehicles returning from lease contracts could support sales. Overall, the industry is entering the new year with cautious optimism, continuing to adapt to changing regulations and buyer preferences.