Car manufacturers, including General Motors and Hyundai Motor, have announced higher sales in the US market, driven by consumer concerns about possible price increases due to the tariffs that US President Donald Trump intends to impose.
General Motors said on Tuesday that deliveries rose 17% during the first quarter, with a growth of 15% in retail sales. Ford Motor saw an increase in retail sales, while Toyota Motor recorded slight growth during the first three months of the year.
Randy Parker, chief executive of Hyundai and Genesis in North America, told reporters: “This week was without a doubt the best weekend I have seen in a very long time. A lot of people flocked this week, especially to try to buy before the tariffs take effect.”
This just-ended quarter may be the last period of relative stability before the industry experiences significant turmoil due to Trump's 25% tariffs on car imports, which take effect this week.
Overseas cars assembled account for about half of car sales in the United States, and even domestically produced cars that rely heavily on non-American components, which may also be subject to tariffs.
Research institutions such as Edmonds and Cox Automotive had expected sales to see a strong boost from anxious consumers, who are rushing to buy before potential prices rise.
Thomas King, head of data and analytics at JD Power, said in a statement that the threat of imposing tariffs “has already begun to affect the sector.”
He added that the March results were "particularly strong, supported by consumers' acceleration of purchase decisions to avoid potential increases associated with fees."
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