May Sales Steady as Tariff Fever Cools
U.S. new light vehicle sales improved for Ford, Hyundai and Kia and fell by double digits for Mazda in May, according to monthly reports submitted by manufacturers to the Automotive News Data Center.
Ford’s premium Lincoln marque enjoyed a 39% year-over-year gain; Ford model sales were up 15.3%. Sales of Hyundai’s Genesis brand improved by 13.6% while Hyundai increased by 7.7%, led by record May sales for the Tucson, Santa Fe and Palisade SUVs. Kia sales were up 5.1%.
U.S. sales also improved for Toyota (up 12.3%), Lexus (2.4%) and Honda (7.3%) models, but Acura sales ticked down by less than a percentage point.
Mazda sales fell by 18.6% from the prior-year month, snapping a 12-month streak. Subaru reported a 10.4% year-over-year decrease, ending its own streak of improved YOY sales at 33 months.
Volvo’s report is expected in the coming days; other factories, including General Motors and Stellantis, report sales on a quarterly basis.
The seasonally adjusted annualized selling rate is forecast to dip below 16 million units as the rush to beat tariffs on imported vehicles enacted by the Trump administration April 3 dissipates.
“The Trump administration has slapped 25 percent tariffs on U.S. light-vehicle imports since April 3, a levy that impacts about 50 percent of all cars and light trucks sold in the states,” writes AN’s David Phillips. “If the tariffs persists, analysts expect automakers to drop some models or discontinue features in the U.S., limiting selection.”
Citing J.D. Power and GlobalData forecasts, Phillips notes factory incentives fell to $2,563 in May, down $200 from the prior month and $143 year-over-year.
