It’s no April Fool’s Day joke --
automakers have something to smile about today.
“The auto industry witnessed a different kind of March madness last month as buyers flocked to dealerships to
lock in deals before President Trump’s auto tariffs lift prices by thousands of dollars, several carmakers said,” according to The New York Times.
“This past weekend was by far the best
weekend I’ve seen in a very long time,” Randy Parker, the CEO of Hyundai Motor North America, told reporters on Tuesday. The company reported a 13% increase in March sales on Monday
compared with a year earlier.
General Motors reported a 16.7% jump in new vehicle sales compared with the first quarter of 2024, led by incremental gains in sales of new
all-electric vehicles as well as notable increases in entry-level crossovers and full-size SUVs.
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“The Detroit automaker is expected to have significantly outpaced overall
industry sales for the first quarter, which appear to be more robust than expected,” according to CNBC. “Auto analysts originally had forecast roughly 1% or
less year-over-year sales growth.”
Kia Motors also reported double-digit sales gains, followed by a 5% jump for Honda. Sales were roughly even for Toyota.
“Ford Motor said Monday that its March sales at dealerships rose 19%,” according to The New York Times. “However, Ford’s sales during the overall quarter
slipped 1%, to about 500,000 vehicles, because of a decline in sales to fleet customers, the company said.”
Nissan reported a nearly 6% increase during the first quarter. The
automaker announced it is reducing the prices for 2025 Rogue and Pathfinder. The move aims to boost affordability for customers facing a challenging car-buying landscape, according to the automaker.
The reductions range from $640 to $1,930 depending on model and trim level.
Jessica Caldwell, Edmunds’ head of insights, said March sales were particularly strong despite
ongoing affordability issues and broader economic concerns, according to the Detroit Free
Press.
“Inventory levels were healthy for many brands, incentives continued to make a comeback, and there was clear evidence of pent-up demand after the
sluggish sales years that followed 2020,” Caldwell said in a statement. “Although automotive tariffs — now set to take effect on April 2 — might have pulled ahead some vehicle
purchases in Q1, the quarter’s results were largely driven by the strength of the industry’s underlying fundamentals. That said, the road ahead is less certain: These same tariffs will
likely create headwinds for the industry in Q2 and beyond.”
Parker said he could not estimate what impact tariffs would have on Hyundai's prices, notes The New York
Times. Hyundai and its sibling Kia have factories in Georgia and Alabama, but they import substantial numbers of vehicles from South Korea.
“We haven’t made any
firm decisions yet,” Parker said. But he added, “Don’t wait to buy tomorrow what you can buy today.”