U.S. Vehicle Sales (August 2026)

U.S. Vehicle Sales Strengthened in August

• U.S. vehicle sales rose 2.7% month on month (m/m) to 16.8 million SAAR in August, well above consensus expectations for 16.1 million units.
• Unadjusted sales volumes were 1.38 million units – 5.8% below August 2025 levels. The average daily selling rate (DSR) was 53,105, coming in below the year ago level of 54,300. 
• Passenger vehicle sales were down 4.6% year on year (y/y) while sales of light trucks were down 6.1% y/y. Light trucks accounted for 83% of last month’s sales, roughly equal to their year ago share.
  
   

Key Implications

• Vehicle sales improved in August and remained above 16 million units for a sixth consecutive month. Comparisons to the year prior need to be taken with a grain of salt, as the expiration of federal consumer subsidies for EVs and the inclusion of the Labor Day weekend during August boosted volumes for August 2025. This was further illustrated by the decline in the EV share of sales, which fell from 11.9% a year ago to 7.7% last month.
• Vehicles sales remain subject to a confluence of headwinds and tailwinds with the latter edging out the former thus far this year. The continued resilience in the labor market, combined with double digit year-to-date equity market gains have helped to offset some of the headwinds facing households. This includes a contraction in real wages (-0.5% y/y in July), partly owing to higher energy prices, and a notable uptick in bond yields over the past few months. The latter could place renewed upward pressure on financing costs moving forward if it is sustained, which would weigh on sales through the fourth quarter.
  
   
   
  
  
   

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