US automakers are set to release first-quarter production data soon. Analysts predict a modest increase in US auto sales, potentially rising by 0.6% to 3.79 million vehicles, attributed to steady demand. However, new tariffs introduced by the Trump administration are poised to impact the automotive sector.
Cox Automotive anticipates General Motors (GM, Financial) to maintain its leadership in the market this quarter, followed by Toyota (TM) and Ford (F). Jessica Caldwell, from Edmunds, noted that impending tariffs, effective soon, might have accelerated some first-quarter purchases. Meanwhile, electric vehicle maker Tesla (TSLA) is expected to report a decline in deliveries.
The tariffs could alter consumer sentiment and force reconsiderations in purchasing behavior. They are likely to reduce the availability of low-cost imports, such as Ford's small pickup Maverick, which might heighten concerns about affordability as new car prices near $50,000 on average. Cox warned that these tariffs might drive inflation, potentially hampering new car sales in subsequent years.
