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yesterday

U.S. Auto Sales Edge Up 2% in 2025 as Buyers Favor Trucks, SUVs and Hybrids

Analysts see a fragile 2026 outlook due to affordability pressures.

Vehicles of automobile brands belonging to General Motors Company are seen at a car dealership in Queens, New York, U.S., November 16, 2021. REUTERS/Andrew Kelly/File Photo
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The GMC Sierra was among the models that helped General Motors report higher auto sales in 2025 compared with the prior year
Most experts advise car buyers to keep car payments to about 15% of their monthly income.

Overview

  • Automakers sold about 16 million vehicles in 2025, with gains concentrated in gas-powered trucks, SUVs and hybrids.
  • Battery-electric models fell to 6.6% of December retail sales from 11.2% a year earlier, according to J.D. Power.
  • The average new-vehicle transaction price reached $47,104 in December and monthly payments hit $776 for the month, highlighting persistent affordability strains.
  • Automakers pulled back on EV strategies, with Ford recording a $19.5 billion charge and GM taking $1.6 billion as programs were canceled or scaled back.
  • GM led 2025 deliveries with roughly 17.3% market share, and a Senate Commerce hearing on Jan. 14 will probe affordability as forecasters project flat to slightly lower sales in 2026.