Automakers confronted supply-chain snarls, unpredictable tariffs and the removal of a $7 500 electric-vehicle tax credit, factors that drove some buyers to dealer lots to snatch vehicles before regulations pushed prices higher.
“To say it’s been a sales roller coaster of a year would be an understatement,” said Thomas King, President of OEM solutions at J.D. Power. Analysts warn that sustaining this growth in 2026 may prove difficult as economic uncertainty and tariff-related costs weigh on consumers. About 16 million vehicles were sold last year, with gas-powered trucks, SUVs and hybrids fueling demand. Final figures will be released later Monday by automakers including Toyota Motor, General Motor and Hyundai Motors. While some automakers bumped up prices of models made outside of the US, tariffs did not substantially affect vehicle prices, J.D. Power found.
The average new-vehicle retail transaction price in December had been expected to reach $47 104, up $715 or 1.5% from December 2024, the firm said. Still, affordability remained a top barrier for the industry, and executives from Detroit’s auto giants have been called to testify about this at a Senate Commerce Committee hearing on January 14.
–Reuters–
