Full-Year 2025 U.S. Auto Sales Report

The U.S. new-vehicle market lost some momentum in December and enters 2026 in a lower gear, with year-end results highlighting a widening divide between price-sensitive shoppers and buyers who can still absorb today’s higher ownership costs.

New-vehicle sales fell 2.5 percent to 1.47 million units for the month of December, according to a preliminary report released Jan. 6 by GlobalData. Retail deliveries declined 2.8 percent, marking the third consecutive monthly drop after federal tax credits for electric vehicles expired at the end of September.  However, the auto industry can celebrate the fact that full year 2025 showed an over 2% increase from full year 2024.  That equates to about 350,000 more sales in 2025.

Industry analysts say elevated transaction prices, higher interest rates and rising insurance and repair costs are increasingly pushing lower-income households out of the new-car market, while more affluent buyers continue to support sales. That dynamic is becoming more pronounced as overall volumes soften but hybrids and higher-margin vehicles remain relatively resilient.

Electric-vehicle demand weakened sharply late in the year. Fourth-quarter EV sales are projected to slide 37 percent to about 230,000 units, according to Cox Automotive estimates. Several automakers reported steep EV declines following the loss of federal incentives that had helped draw first-time buyers into the segment.

General Motors

At General Motors, fourth-quarter U.S. sales fell 6.8 percent, snapping a streak of four straight quarterly gains. Chevrolet volume declined 6.5 percent, GMC slipped 3.7 percent, Buick dropped 11 percent and Cadillac fell 17 percent. GM’s EV sales softened significantly after incentives ended, weighing on quarterly results. Even so, the automaker finished 2025 with U.S. sales of 2.8 million vehicles, up 5.6 percent, with GMC setting another annual record.

Toyota Motor Corp.

Toyota Motor Corp. delivered one of the stronger December performances. U.S. sales rose 10 percent last month on balanced demand across cars, crossovers, and SUVs at the Toyota division. Sales climbed 12 percent at Toyota and 3.2 percent at Lexus, with Lexus setting an annual sales record of 370,260 vehicles, up 7.1 percent.

Toyota said December gains were driven by sharply higher volume for six key models: Corolla, 4Runner, Sequoia, Grand Highlander, Highlander and Corolla Cross. For all of 2025, Toyota Motor’s U.S. sales rose 8 percent to 2,518,071. Electrified vehicles — the vast majority hybrids — totaled 1,183,248 units, up 18 percent and accounting for 47 percent of total volume, reinforcing the industry’s shift toward hybrids as EV demand cools.

Ford Motor Corp.

At Ford Motor Co., higher pickup sales and record hybrid volume produced a 2.7 percent fourth-quarter gain, with full-year deliveries up 6 percent. Ford’s EV sales tumbled 52 percent in the quarter and finished down 14 percent for the year, but hybrid sales reached records of 55,374 in the fourth quarter and 228,072 for all of 2025. With sales up 6.2 percent at Ford and 2 percent at Lincoln, the automaker posted its best fourth quarter and best full year since 2019.

Honda Motor Co.

Honda Motor Co. struggled in December, with U.S. sales falling 12 percent. Volume dropped 13 percent at Honda and 8.9 percent at Acura. Demand weakened notably for core models including the CR-V, HR-V, Civic and Pilot, while sales of the Prologue EV plunged 88 percent after incentives expired. Honda said shifting market conditions and a late-year microchip shortage that constrained inventories contributed to the softer results. For the year, Honda’s U.S. sales edged up 0.5 percent to 1,430,577.

Stellantis

Stellantis posted a 4 percent fourth-quarter gain, aided by stronger results at Jeep, Chrysler and Dodge, though full-year sales fell 3 percent. Jeep deliveries rose 4 percent in the quarter and finished up 1 percent for the year, while Ram slipped 4 percent in the quarter and ended 2025 down 2 percent. It was the company’s second straight quarter of year-over-year U.S. gains after eight consecutive declines.

“With consecutive quarterly sales increases and market share growth, it’s clear that we are taking the right steps to reset our business in the U.S.,” Jeff Kommor, head of U.S. retail sales for Stellantis, said in a statement. “There is still work to do, but we made progress this year with a diversified powertrain lineup.”

Nissan Motor Co.

Nissan Motor Co. reported a 3.7 percent drop in fourth-quarter U.S. sales, though full-year volume edged up 0.2 percent. Sales fell 3.4 percent at Nissan and 8.4 percent at Infiniti in the final quarter, extending Infiniti’s slide to eight consecutive quarters.

Hyundai/Kia

Hyundai and Kia again leaned heavily on hybrids and crossovers as EV demand cooled. Hyundai sales rose 0.6 percent to 78,930 vehicles in December, while Kia climbed 2.3 percent to 75,003. For 2025, Hyundai sales increased 7.8 percent to 901,686 and Kia rose 7 percent to 852,155, marking the third straight annual record for both brands.

Hyundai said its hybrid sales surged 71 percent in December to a monthly record of 23,573 vehicles, representing 30 percent of total deliveries, led by the Elantra, Santa Fe, Sonata, Tucson and Palisade. Demand for the Ioniq 5 and Ioniq 6 slid by 50 percent or more, underscoring the challenge facing EVs without incentives.

“At Kia,” the company said in a statement, “U.S. retail sales have now increased eight consecutive years,” rising 5 percent in 2025 and reaching an all-time high for the sixth straight year. Higher Sportage, Carnival, Seltos, K5 and K4 sales offset weaker Sorento and Telluride volume. EV demand also softened, with EV6 sales down 65 percent and EV9 deliveries off 48 percent in December.

Randy Parker, CEO of Hyundai Motor North America, said 2026 is shaping up to be “very challenging” for the industry, adding that “affordability is going to be the key.”

Subaru, Mazda, Volkswagen

Elsewhere, volume dropped 7.2 percent in December at Subaru, with 2025 sales down 3.6 percent, its first annual decline since 2022 during the pandemic and chip shortage. Mazda, coming off a record 2024, saw U.S. sales slip 3.3 percent in 2025, with December volume off 19 percent as it pulled back on fleet business. Fourth-quarter sales fell for the third straight quarter at Volkswagen and finished down 13 percent for the year.

BMW, Audi, Genesis

Among luxury brands, BMW sales slipped 3.4 percent in the fourth quarter but rose 4.7 percent to 388,897 for the year, making it the top-selling luxury brand for the seventh straight year. Audi deliveries fell 16 percent for the year, while Genesis posted a 3.8 percent December increase and set an annual sales record of 82,331 vehicles, up 9.8 percent, led by the GV70 and GV80. Mercedes-Benz, Porsche and JLR are scheduled to release results later in January.

The Year Ahead

Looking ahead, analysts expect a tougher road in 2026. The U.S. light-vehicle market is estimated to have risen 2.3 percent to 16.3 million units in 2025, supported by strong sales in the first three quarters. Forecasts for 2026 call for softer volume, weighed down by affordability pressures, high borrowing costs, the impact of U.S. tariffs on pricing and weaker EV demand.  With that said, as I’ve learned after doing the for a long time, the “analysts” are wrong more than they are right, so we’ll see.

The average retail transaction price for a new vehicle in December is expected to reach $47,104, up $715, or 1.5 percent, from a year earlier, according to J.D. Power and GlobalData — a reminder that while buyers are still in the market, many are doing the math more carefully than ever.

For those watching the Ford vs. Toyota race for sales supremacy, when the smoke cleared, Toyota pulled out a 61,696 vehicle victory out of 4,233,926 annual combined sales between the two giants.  The biggest winner for the year was Genesis at 9.8% and the biggest loser was Alfa Romeo, which was down over 36%.  And just for fun:  Rolls-Royce outsold Fiat in the United States.

Here are the winners & losers for 2025, the year-to-date sales numbers for each brand, and how that compares to the full year of 2024

Awaiting Sales Results:

• Mercedes-Benz
• Land Rover
• Jaguar
• Porsche

Electric Vehicles

As usual, I will give you these numbers, but honestly, I have little faith in them.  Most EV automakers say they are estimates, some just publish production numbers, which doesn’t mean the vehicles were actually sold.  Whatever the case, here they are:

1. Tesla: 544,500 Down 13.1%
2. Rivian: 42,490 Down 13%
3. Lucid: 10,100 Up 50.7%
4. Polestar: 7,325 Up 6.2%
5. Vinfast: 2,287 Down 14.5%
6. Brightdrop:  

Here are the winners & losers for 2025, the year-to-date sales numbers for each brand, and how that compares to the full year of 2024:

1. Toyota: 2,147,811 Up 8.1%
2. Ford: 2,086,115 Up 6.4%
3. Chevrolet: 1,816,979 Up 4.9%
4. Honda: 1,297,144 Up 0.4%
5. Hyundai: 901,686 Up 7.8%
6. Nissan: 873,307 Up 0.9%
7. Kia: 852,155 Up 7%
8. GMC: 652,394 Up 6.2%
9. Subaru: 643,591 Down 3.6%
10. Jeep: 593,399 Up 1%
11. Ram Trucks: 431,670 Down 1.7%
12. Mazda: 410,346 Down 3.3%
13. BMW: 388,897 Up 4.7%
14. Lexus: 370,260 Up 7.1%
15. Volkswagen: 329,813 Down 13%
16. Buick:   198,155 Up 8%
17. Cadillac: 173,515 Up 8.3%
18. Audi: 164,942 Down 16.1%
19. Acura: 133,433 Up 0.8%
20. Chrysler: 126,372 Up 1.4%
21. Lincoln: 106,868 Up 2%
22. Dodge: 101,927 Down 28.1%
23. Mitsubishi: 94,754 Down 13.7%
24. Genesis: 82,331 Up 9.8%
25. Infiniti: 52,846 Down 9%
26. Volvo: 30,906 Down 13.4%
27. Mini: 28,749 Up 9.3%
28. Alfa Romeo: 5,652 Down 36.2%
29. Maserati: 4,650 Down 30.4%
30. Bentley: 3,015 Down 1.3%
31. Lamborghini: 2,915 Down 1.2%
32. Rolls-Royce: 1,590 Down 0.3%
33. Fiat: 1,321 Down 13.5%
34. McLaren 1,125 Up 3.7%