U.S. Vehicle Sales (December 2025)

U.S. Vehicle Sales Trended Higher in December

• U.S. vehicle sales rose 1.9% month-on-month (m/m) to 16.0 million (annualized) units in December, outpacing consensus expectations for 15.8 million units.
• Unadjusted sales volumes were 1.46 million units or 2.3% below year-ago levels. The average daily selling rate (DSR) was 56,161, 6.0% lower than December 2024's 59,769 DSR.
• Passenger vehicle sales were down 5.4% year-on-year (y/y) while sales of light trucks were down 1.7% y/y. Light trucks accounted for 84% of last month's sales, equal to their year-ago share.   

Key Implications

• U.S. vehicle sales ended the year on a stable footing, bringing the total volume for 2025 to 16.2 million units – up 2.2% year-on-year. However, most of this strength was attributed to the first three quarters of the year, with sales driven higher in advance of multiple policy shocks (i.e. tariffs, electric vehicle subsidy expiration, etc.). This led to annualized sales averaging 16.4 million between January and September but falling to 15.9 million in the fourth quarter. 
• As sales continue to normalize heading into 2026, economic fundamentals are likely to play a greater role. This includes a soft labor market backdrop which will likely continue to weigh on sales over the near term. Easing financial conditions will likely provide a partial offsetting tailwind, which we expect to lead to a gradual uptick in sales moving through the year.       

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