2025 June US Automobile Sales: Trends, Insights, and Market Dynamics

The US automobile market in June 2025 showcased a complex landscape, with sales reflecting a mix of challenges and opportunities. Total new vehicle sales reached approximately 1.25 to 1.27 million units, marking a decline of 5.8% compared to June 2024, largely influenced by fewer selling days (24 versus 26) and economic factors like tariffs and affordability concerns. Despite the monthly dip, the market showed resilience, with a seasonally adjusted annualized rate (SAAR) of 15.3 to 15.6 million units, aligning closely with May’s performance. This article dives into the key trends, brand performances, and market dynamics shaping June 2025 US auto sales, optimized for search engines and packed with actionable insights for car buyers, industry professionals, and enthusiasts.

Key Takeaways from June 2025 US Auto Sales

• Total Sales Volume: Approximately 1.25–1.27 million units, down 5.8% year-over-year (YoY) due to fewer selling days and a post-tariff demand slowdown.
• SAAR: Estimated at 15.3–15.6 million units, reflecting a stable but cautious market.
• Market Trends: Declines in Japanese and European import-heavy brands, strong hybrid and EV sales for Korean automakers, and a shift toward light trucks, which accounted for 83% of sales.
• Challenges: Tariffs, low inventory levels, and a cyberattack on CDK Global disrupted dealership operations, impacting sales reporting and completions.
• Winners and Losers: Hyundai, Toyota, and Ford posted gains, while Stellantis, Tesla, and import-reliant brands like Volkswagen and Mazda faced declines.

Detailed Brand Performance in June 2025

Korean Automakers Shine

Korean brands, particularly Hyundai and its luxury arm Genesis, continued their strong performance:

• Hyundai: Recorded a 4.5–8.1% YoY sales increase, marking nine consecutive months of growth. Strong demand for hybrids and EVs drove this success.
• Kia: Saw a slight decline of 3.2–5.1% YoY, with slowing EV and SUV sales, but maintained robust year-to-date (YTD) growth.
• Genesis: Achieved double-digit growth for the ninth straight month, solidifying its position in the luxury segment.

Japanese Brands: Mixed Results

Japanese automakers experienced varied outcomes, heavily influenced by import tariffs:

• Toyota: Posted a 9% increase in Q2 sales, driven by hybrid and plug-in hybrid demand. However, inventory shortages for models like the 4Runner and Highlander tempered June results.
• Honda: Saw a modest decline of 3.9% in domestic sales, with exports dropping significantly by 89.8% YoY. Hybrid and EV sales, including the Prologue SUV, remained a bright spot.
• Subaru: Declined 10.4% YoY, citing low inventory for models like the Japan-produced Forester.
• Mazda: Fell 18.6%, marking its first decline since April 2024.
• Mitsubishi: Dropped 16.1% YoY, reflecting challenges with import-heavy lineups.

European Brands: Import Challenges

European automakers, reliant on imports, faced significant headwinds due to a 25% tariff imposed since April 3, 2025:

• Volkswagen: Plummeted 31.8–40.0% YoY, struggling with tariff-related price pressures.
• Mercedes-Benz: Declined 4.1–20.7%, reflecting cautious consumer sentiment.
• Audi: Dropped 20.3–23.7% YoY, impacted by import costs and reduced incentives.
• BMW: Mixed results, with a slight 4.1% increase in one report but a 15.1% decline in another, highlighting data inconsistencies due to CDK disruptions.
• Volvo: Bucked the trend with an 11.3–15.0% YoY increase, driven by strong demand for its models.

American Automakers: Steady but Uneven

• General Motors (GM): Estimates suggest GM maintained its position as the top-selling US automaker, with YTD sales around 2.7 million units, up 4.3% from 2024. June-specific data was less clear due to reporting challenges.
• Ford: Reported a 15% increase in Q2 pickup sales, contributing to overall stability. Hybrid and EV sales also grew, with EVs up 34.8% YTD.
• Stellantis: Faced a steep 21% Q2 sales drop, with brands like Jeep and Ram struggling amid competitive pressures and reduced incentives.
• Tesla: Saw an estimated 16% decline in Q2 US sales, attributed to an aging lineup and increased competition. Its EV market share remained dominant at 57%.

Market Dynamics and Influencing Factors

Impact of Tariffs

The 25% tariff on passenger cars and light trucks, effective since April 3, 2025, significantly shaped the market. A rush of purchases in March and April, driven by tariff fears, led to a “payback effect” in June, reducing demand. Some automakers raised prices, while others, like Honda and Nissan, absorbed costs to remain competitive. A presidential decree on April 29 eased tariffs on imported auto parts for US-based production, but its impact was not fully felt in June.

Inventory Challenges

New car inventory dropped to 2.5 million units by July 2025, down from 2.7 million in April. Brands like Toyota, Honda, and Subaru faced tight supplies, limiting sales potential. The average time a vehicle remained on dealer lots rose to 45 days, up from 28 days in June 2024, reflecting slower turnover.

CDK Global Cyberattack

A cyberattack on CDK Global, a key dealership software provider, disrupted sales operations for approximately 15,000 dealers in late June. This led to delayed reporting and pushed some deliveries into Q3, skewing sales figures.

Shift to Hybrids and EVs

• Hybrids: Surging demand for hybrids bolstered sales for Toyota, Hyundai, and Ford. Toyota alone sold over one million hybrids YTD, up 53% from 2024.
• Electric Vehicles (EVs): EV sales share stabilized at around 7% in June, down from 8% in January. Tesla’s dominance continued, but its 22.2% YTD sales drop allowed competitors like Ford (+11.6%) and Volkswagen (+107.9%) to gain ground. Policy uncertainty, including potential EV tax credit rollbacks, dampened demand.

Consumer Sentiment and Affordability

High prices, rising interest rates, and tariff-induced cost pressures made consumers cautious. Only 16.9% of vehicles sold above MSRP in June, down from 34.9% in June 2024. Manufacturer incentives rose 51.2% YoY to $2,625 per vehicle, but many buyers adopted a “wait-and-see” approach, anticipating lower loan rates or price reductions.

Segment Breakdown

• Light Trucks: Dominated with an 83% market share, up from 81% in June 2024. Sales fell 2.2% YoY, reflecting a slowdown in SUV and pickup demand.
• Passenger Cars: Declined 12.5% YoY, continuing their long-term market share erosion.
• Luxury Segment: Genesis and Volvo showed strength, while Mercedes-Benz, Audi, and Volkswagen struggled. BMW’s performance was inconsistent across reports.

Outlook for Q3 2025

The US auto market is expected to face a “long, slow summer” as tariff effects fully materialize and inventory constraints persist. Cox Automotive forecasts a full-year sales volume of 16.3 million units, a 3% increase from 2024’s 15.85 million. Key factors to watch include:

• Tariff Impacts: Rising prices may further dampen demand, especially for import-heavy brands.
• Inventory Recovery: Replenishment of popular models could boost sales, particularly for Toyota and Subaru.
• EV and Hybrid Trends: Continued growth in hybrids is likely, while EV sales face uncertainty due to policy changes.
• Economic Conditions: Lower interest rates and improved consumer confidence could spur demand in Q4, especially during the festive season.

Tips for Car Buyers in June 2025

• Shop for Hybrids: With strong demand and limited supply, hybrids from Toyota, Hyundai, and Ford offer value and fuel efficiency.
• Negotiate on Inventory: Vehicles sitting on lots for 45+ days may come with better deals as dealers aim to clear stock.
• Monitor Incentives: Look for brands like Hyundai and Kia, which are offering competitive discounts to offset tariff costs.
• Consider Timing: Waiting until Q4 may yield better prices if interest rates drop or inventory improves.

Conclusion

June 2025 US automobile sales reflected a market navigating tariffs, inventory challenges, and shifting consumer preferences. While Korean and select American brands like Hyundai, Toyota, and Ford capitalized on hybrid and EV demand, import-heavy Japanese and European brands faced declines. The CDK cyberattack and fewer selling days further complicated the picture. As the industry heads into Q3, automakers must adapt to economic uncertainties and evolving buyer priorities to maintain momentum. Stay informed with the latest sales data and trends to make smarter car-buying decisions in this dynamic market.