Automakers like Toyota (TM), Ford (F), Kia (000270.KS), and Hyundai (005380.KS) noticed gross sales rev increased in August as customers shook off tariff results for now, and dove into EVs earlier than tax credit expire. However the outlook for the trade heading into the autumn is murky, with lack of incentives, excessive rates of interest, and a depressing financial panorama weighing available on the market.
Toyota, the world’s largest automaker, reported August gross sales within the US jumped 13.6% to only beneath 225,367 automobiles, with its high promoting RAV4 crossover main the way in which with a 20% soar. The trusty Camry sedan additionally noticed surge 14% too – with each the Camry and RAV4 now absolutely hybrid.
Ford additionally mentioned US gross sales in August rose 3.9%, in comparison with a yr in the past, to 190,206 automobiles offered. Powering the positive aspects had been Ford SUVs, Maverick pickups, and EV gross sales, the corporate mentioned.
The compact Maverick pickup gross sales surged 16.4% to 11,956 items offered, making it a file August gross sales month, Ford mentioned. Ford’s SUVs, just like the Explorer and Bronco, climbed 9.2% within the month to 73K items offered, making it Ford’s greatest August for SUV gross sales in 22 years.
Not surprisingly, gross sales of EVs like Mustang Mach-E (up 35%) and the F-150 Lightning (up 21%) additionally spiked almost 20%, to a different file August of 10,671 items offered.
Automakers like Ford are raking in EV gross sales forward of the expiration of the federal EV tax credit score on Sept. 30.
Kia additionally reported large gross sales positive aspects with its EVs. Kia mentioned the full-size EV9 hit 2,679 items offered in August, up 54% in comparison with the prior month. The mid-size EV6 and compact Niro EV notched gross sales positive aspects of 39% and 57% respectively month over month. Kia mentioned it was the fourth consecutive month of EV gross sales positive aspects.
General, Kia US gross sales jumped 10.4% yr over yr in August, with the aforementioned EV9 and Kia Sportage SUV having their greatest gross sales months ever.
Kia’s K5 sedan, Soul SUV, Telluride full-size SUV, and Carnival minivan, amongst others, all noticed gross sales positive aspects within the month.
“Kia delivered one other gross sales milestone by recording greater than 83,000 gross sales in a single month — our best-ever month-to-month gross sales outcome — retaining us firmly on observe to attain our third consecutive annual gross sales file and our highest ever market share,” mentioned Kia American vp Eric Watson in a press release.
Kia sister model Hyundai additionally had a robust month.
Hyundai mentioned gross sales rose 12% to 88,523 automobiles, which the corporate mentioned was its eleventh straight month of gross sales positive aspects and an August gross sales file.
Gross sales data: Hyundai IONIQ 5 N is displayed throughout the New York Worldwide Auto Present 2024, the place car producers introduce their latest fashions to the world, in New York, United States on March 27, 2024. (Photograph by Fatih Aktas/Anadolu through Getty Pictures) ·Anadolu through Getty Pictures
The corporate set August gross sales data for the Elantra N and Elantra hybrid sedans, the Santa Fe hybrid, the Palisade SUV, IONIQ 5 EV, and Santa Fe SUVs.
Hyundai mentioned its electrified automobiles, which embody each hybrids and full EVs, accounted for 32% of all its automobiles offered, with its quantity IONIQ 5 EV gross sales surging 60% yr over yr.
These main automakers’ wins come because the trade grapples with tariffs, together with persistently excessive rates of interest. Whereas Ford makes a majority of its automobiles within the US, it builds one in all its best-sellers — the Maverick — in Mexico. The corporate has needed to increase costs on the Maverick to regulate for tariff prices, however up to now customers are nonetheless shopping for.
Korea-based Kia and Hyundai, which each construct a big quantity of automobiles of their house nation, are at the moment paying 25% tariffs to import automobiles into the US. A preliminary deal for 15% tariffs has been agreed to, however not finalized.
Rounding out the highest automakers, Honda truly noticed gross sales dip within the month of August, although a Honda consultant notes this was as a result of final August was a somewhat giant one for the Japanese automaker as a result of CDK seller software program hack that occurred earlier in the summertime. The hack meant depressed gross sales in June and July that then had been pushed into August, artificially boosting that month’s complete.
Japanese rivals Mazda (7261.T) and Subaru (FUJHY) didn’t fare as nicely in August. Mazda gross sales had been down 7.6% yr over yr, with Subaru down almost 3%, as the 2 Japanese corporations are extra reliant on imports topic to auto tariffs. Each Mazda and Subaru have raised costs this yr because of tariffs.
Sedans are displayed at a Subaru automobile dealership, Thursday, Aug. 14, 2025, in Manchester, N.H. (AP Photograph/Charles Krupa) ·ASSOCIATED PRESS
Cox Automotive experiences August’s month-to-month gross sales tempo, or seasonally adjusted annual fee (SAAR), hit 16.0 million in August, a slight decline from July’s sturdy 16.4 million stage, however a big jujmp over final yr’s 15.1 million tempo.
However whereas August total was a robust month for the trade, outlook for the remainder of the yr will seemingly be muted.
Cox Automotive initiatives the surge in EV gross sales to wrap up in September, and the new-vehicle market to gradual within the fourth quarter as excessive costs and tight stock put a lid on demand.
“Gross sales of EVs will seemingly fall dramatically when tax credit expire, and market situations for different automobiles will grow to be more difficult in future months,” mentioned Charlie Chesbrough, Cox’s senior economist. “Extra tariffed merchandise are changing present stock, and costs are anticipated to be pushed slowly increased, resulting in softer gross sales within the coming months.”
Whereas the Federal Reserve is predicted to chop its benchmark fee by 0.25% later this month, it nonetheless will not be sufficient to tug down auto mortgage charges which were caught within the high-single digits for many loans.
Add in a weaker jobs image in August with personal payrolls shrinking heading into the autumn, and the market now has given consumers extra causes to tug again from buying giant, large ticket objects like automobiles.
And lets not overlook these pesky tariffs – pushing up the prices of imported autos – are nonetheless with us for the indefinite future.
“Buyers can count on the tariffs to extend automobile costs by as a lot as $6,000 on automobiles priced beneath $40,000. Increased automobile costs imply increased automobile taxes, financing, automobile insurance coverage, and different possession prices. This worth strain will make automobiles much less reasonably priced for customers,” Kelley Blue Ebook mentioned in a report final month.
This story has been up to date.
Pras Subramanian is the lead auto reporter for Yahoo Finance. You’ll be able to comply with him on X and on Instagram.
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