DETROIT — Major automakers, including Ford Motor, Hyundai Motor, and Kia, saw substantial increases in U.S. sales in April when compared to the previous year. This surge in purchasing appears to be driven by consumer concerns over potential price hikes related to tariffs.
The heightened buying trend, which began in late March, extended into April as several manufacturers offered special pricing promotions to alleviate customer anxiety about the impact of President Donald Trump’s auto tariffs on imported vehicles.
“April results are dominated by the prospect of future vehicle price increases due to tariffs,” stated Thomas King, president of the data and analytics division at J.D. Power.
However, industry experts caution that this sales uptick may not persist. King, along with Jonathan Smoke, chief economist at Cox Automotive, pointed out that demand started to wane in late April as new vehicle inventories diminished and prices rose following the initial consumer rush.
“The economy and auto market are transitioning to a world with higher tariffs on imports,” Smoke noted on Tuesday, adding that “the first phase of frenzy in the retail vehicle market seems to have already passed,” with sales momentum decreasing as the month drew to a close.
Smoke suggested that the combination of increased costs and reduced vehicle inventories is likely draining momentum, which could potentially result in lower sales in the upcoming weeks.
Despite the uncertainty ahead, automakers benefited from a surge in consumer interest during the initial wave.
Ford reported a notable 16% rise in year-over-year sales for April, buoyed not only by consumer demand but also by an ongoing “employee pricing” initiative that was launched alongside Trump’s 25% tariffs on imported vehicles. The company announced it would extend this pricing program through the July 4 holiday.
Hyundai, which has guaranteed not to raise prices until at least early June, reported a 19% increase in sales for its brand compared to April 2024.
Kia, operating as a separate entity under Hyundai’s corporate umbrella, marked roughly a 14% year-over-year sales growth last month.
General Motors releases its U.S. sales data on a quarterly basis, but CEO Mary Barra indicated on Thursday that the company had experienced its best April since 2007.
The implementation of Trump’s 25% tariffs on imported vehicles commenced on April 3. Though some modifications were made to these tariffs this week, additional levies of 25% on auto parts are set to take effect by Saturday.
This week’s adjustments include provisions for reimbursing automakers for certain domestic parts and a reduction in the overlapping nature of tariffs affecting the industry.
Ford CEO Jim Farley expressed that the recent adjustments to tariffs could provide some relief, but emphasized the need for further measures to support automakers and foster growth within the U.S. auto sector.
