11:12 02-10-2025

Q3 2025 U.S. auto market: GM, Ford up 8%, Toyota surges 14% as EV incentives pull demand forward

The U.S. auto market surprised analysts again: in the third quarter of 2025, sales rose 6% to 4.14 million vehicles, up from 3.9 million a year earlier. The biggest gains came from General Motors and Ford, each up 8%, with Toyota posting an impressive 14% increase.

A temporary EV rush added fuel to the quarter. Buyers hurried to seal deals before the federal $7,500 electric-vehicle incentive expired at the end of September. That burst drove a brief spike in EV sales, but it likely pulled some demand forward—experts already see softer months ahead.

Tariffs introduced by the Trump administration have pushed up component costs, yet automakers have not passed those increases on in full. The average new-vehicle price in September reached $45,795, up $1,310 year over year. Even so, demand remains anchored by mid-size crossovers and pickups, a mix that underscores how shoppers prize utility and familiarity when prices are climbing.

GM held onto the sales crown, followed by Toyota and Ford. Tesla, by contrast, recorded a 6% decline in the U.S., even as September brought gains in select European markets.

The market’s resilience suggests American buyers are not yet deterred by tariffs or higher stickers. The balance could shift in the coming quarters, though, with prices expected to rise, credit becoming harder to secure, and appetite for EVs cooling.