Auto Sales to Hit 6-Year High in 2025, but Industrywide Declines Expected in 2026

The new GM logo on the facade of the General Motors facility in Detroit on March 16, 2021. Rebecca Cook/ReutersNine months of strong sales helped buoy the U.S. auto industry for much of 2025, but headwinds from swirling tariff policies and the expiration of a substantial federal tax credit for new electric vehicles (EVs) at the end of September led to a slump in sales in the fourth quarter.Automakers will sell a projected 16.3 million vehicles in 2025, the best sales year since 2019; however, manufacturers are expected to see a 2.4 percent overall decline to approximately 15.8 million new auto sales in 2026, Cox Automotive said on Dec. 17 in its most recent industry forecast.