U.S. new-vehicle sales rose 6.4% in the first quarter of 2025, signaling a resilient automotive market driven by commercial fleets and a growing appetite for electric vehicles (EVs), according to an Associated Press report.
General Motors (GM), Ford, and Toyota all posted gains, with GM delivering approximately a 17% year-over-year increase—totaling around 693,000 vehicles sold in Q1—confirming its position at the top of the U.S. market in total, retail, and fleet sales. Ford also had a solid performance, driven by stronger F-Series pickup and EV sales, while Toyota posted moderate growth, supported by hybrid and EV models.
Fleet purchases played a significant role in the uptick, accounting for nearly a quarter of all Q1 vehicle sales. Both automakers and industry analysts noted that improved supply chains and inventory availability helped ease earlier production bottlenecks, facilitating the large fleet orders. Additionally, preemptive purchases ahead of planned tariffs—such as the 25% auto import tariff announced for April 2025—pushed buyers into showrooms, further inflating volume.
Electric vehicles were a standout growth factor in Q1. Nearly 300,000 EVs were sold, marking a double-digit increase—approximately 10.6–11.4% year-over-year—according to Kelley Blue Book and Cox Automotive. EVs now make up around 7.5–7.6% of all new vehicle registrations, up from about 7% in Q1 2024.
GM spearheaded the EV surge, nearly doubling its EV deliveries by selling roughly 31,900 vehicles across its Chevrolet, Cadillac, and GMC brands, moving ahead of Ford and Hyundai to become the No. 2 EV seller behind Tesla. Key models fueling this momentum included the Chevrolet Equinox EV, Blazer EV, and Cadillac Lyriq, with the Equinox EV alone delivering more than 10,300 units in Q1. Ford also achieved notable EV growth, selling about 22,550 units, a gain of approximately 11.5% year-over-year.
Legacy leader Tesla experienced a decline, delivering around 128,000 vehicles—a drop of 8–9% from Q1 2024—and losing some market share amid intensifying competition from new EV models and rising political headwinds.
A broader group of manufacturers also reported strong EV performances: Porsche saw EV sales jump 249%, Toyota increased EV deliveries by nearly 196%, Volkswagen rose 183%, and Volvo sales surged 173%. Consumers showed heightened interest in electrified vehicles—battery EVs (BEVs), plug-in hybrids (PHEVs), and hybrids (HEVs)—recovering around 24.4% of the market, with wholesaler and retail sales up roughly 29.6% from Q1 2024.
Analysts credit several factors for EV gains: generous federal tax incentives under the Inflation Reduction Act, expanding model lineups from traditional automakers, and improved supply of semiconductors and battery components .
Automakers are recalibrating production strategies and dealership networks to align with evolving buyer profiles. Major manufacturers have ramped up EV production capacity while expanding dealer capabilities to handle electric models. GM, for instance, is reducing reliance on Chinese-made parts for the Equinox EV, making it less vulnerable to geopolitical trade tensions.
Fleet buyers are increasingly selecting electrified vehicles, accelerating long-term fleet electrification efforts. Commercial operators benefit from lower total cost of ownership and favorable tax breaks, which enhances demand for pickup, SUV, and van electric models. This shift aligns with broader sustainability goals and regulatory pressures .
Yet, the future remains cautious. Tariff policies, especially the delayed tariffs on auto imports and parts scheduled for implementation in early April, create short-term spikes in purchases but may challenge long-term growth. Rising interest rates and inflated average transaction prices—around $47,500 in March—could dampen consumer affordability.
As the market heads into Q2, automakers will monitor the durability of EV tax incentives—scheduled to sunset in late September—and how fleets continue their electrification strategies. Manufacturers are betting on sustained momentum by expanding product portfolios and dealer readiness, with hopes the rebound won’t fizzle after the first-quarter tariff effect.
