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Auto Industry Sales Surge Amid Anticipation of New Tariffs
The automotive sector experienced an unusual surge in sales last month as consumers rushed to dealerships to finalize purchases, anticipating that President Trump’s impending auto tariffs would substantially increase vehicle prices, according to multiple automakers.
Hyundai Reports Record Sales
Randy Parker, chief executive of Hyundai Motor North America, informed reporters on Tuesday that the preceding weekend represented “by far the most robust weekend” he had witnessed in a considerable time. Hyundai Motor North America reported a notable 13 percent rise in sales for March compared to the same period last year.
Mixed Sales Performance for Ford
Ford Motor Company also disclosed a significant 19 percent increase in dealership sales during March. However, the automaker’s overall quarterly sales experienced a slight decrease of 1 percent, totaling approximately 500,000 vehicles. This marginal decline was attributed to reduced sales to fleet customers, the company stated.
General Motors Sees First Quarter Growth
While General Motors (GM) did not provide specific figures for March, the company announced a substantial 17 percent increase in sales for the first quarter compared to the previous year, reaching 693,000 vehicles.
Tariffs Expected to Impact Vehicle Pricing
President Trump announced the previous week the imposition of 25 percent tariffs on imported vehicles, set to take effect on Thursday. These tariffs will extend to imported auto parts starting May 3. A considerable proportion of vehicles assembled in U.S. factories incorporate foreign-made components, often exceeding 50 percent of a vehicle’s total value. Industry analysts predict that these new levies may compel car manufacturers to elevate prices on certain models by over $10,000 to offset the increased costs.
Electric and Hybrid Vehicle Sales Rise
GM, Ford, and Hyundai all reported gains in sales of electric and hybrid vehicles. GM highlighted a near doubling of sales for its battery-powered vehicles, reaching 32,000 units, driven by the wider availability of the electric Equinox SUV. The Equinox EV, with a starting price around $35,000, is positioned as one of the more economical electric vehicle options in the U.S. market.
Ford’s Hybrid and EV Sales Growth
Ford indicated a robust 33 percent surge in hybrid vehicle sales and a 12 percent increase in electric vehicle sales, including models like the Mustang Mach-E. Conversely, sales of vehicles equipped with internal combustion engines experienced a 5 percent decrease during the quarter.
Hyundai’s Hybrid Sales Skyrocket
Hyundai reported an impressive 68 percent surge in hybrid vehicle sales, while sales of purely electric vehicles saw a more modest 3 percent increase.
Uncertainty Surrounds Future Pricing
Hyundai’s Mr. Parker acknowledged the uncertainty regarding the potential impact of tariffs on the company’s pricing structure. While Hyundai and its affiliated company, Kia, operate manufacturing facilities in Georgia and Alabama, they still import a substantial volume of vehicles from South Korea.
“Act Now” to Secure Current Prices
“We haven’t finalized any definitive plans yet,” Mr. Parker stated. However, he advised consumers, “Don’t delay purchasing today what you are considering for tomorrow.”