U.S. Vehicle Sales (April 2025)

U.S. Vehicle Sales Continued to Front-Run Expected Tariff Impact in April

• U.S. vehicle sales decreased by 3.1% month-on-month (m/m) to 17.3 million (annualized) units in April – coming in above consensus expectations for 17.2 million.
• Unadjusted sales volumes were 1.46 million units or 11.1% above year-ago levels. The average daily selling rate (DSR) was 56,284 – calculated over 26 days – 6.8% above April 2024's 52,699 daily rate calculated over 25 days.
• Passenger vehicle sales fell 2.5% year-on-year (y/y) while sales of light-trucks increased by 14.4% y/y. Light-trucks accounted for 83% of last month's sales, higher than its year-ago 80% share.   

Key Implications

• Vehicle sales continued to trend well above the averages seen over the past few years in April, as recently imposed auto tariffs continued to influence consumer behavior. Most of the inventory on dealer lots last month pre-dated the implementation of the tariffs, meaning that buyers broadly have yet to see a direct price impact. However, strong sales over the past two months have drawn down inventory levels, and moving into May and June we are likely to start to see the initial impacts of tariffs on sales.
• In addition to the direct impacts of the 25% auto tariffs currently in effect, which are expected to raise the average vehicle price in the U.S. by thousands of dollars, the U.S. economy could also be contending with the far broader reciprocal tariffs over the coming months. It seems that the administration is open to negotiations with other nations which would prevent the worst impacts of these tariffs from coming to form, but elevated uncertainty is still expected to weigh on the economy through at least the second quarter, which will likely add an additional hurdle to vehicles sales in the months ahead.       

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