By Christopher Otts

Americans are still buying a lot of cars, despite broader consumer concerns about the economy and rising prices as a result of tariffs.

Carmakers sold 1.2 million vehicles in May, roughly in line with the figure from last year, according to an estimate from research firm J.D. Power.

Sales returned to a more typical pace in the month following a rush of buying in late March and April, which analysts attributed to consumers seeking to get ahead of President Trump's threatened tariffs on automotive imports.

Concerns about inflation and the impact higher tariffs could have on prices have weighed on consumer confidence, which remains near a record low. Low consumer confidence can indicate that Americans are less willing to spend on big ticket purchases, like automobiles.

Thus far that gloomy mood has yet to spread onto dealer lots.

Americans spent around $53.8 billion on new vehicles in May, a 7% increase from a year prior, according to J.D. Power.

General Motors, which has not yet reported sales results for May, has said it expects industry prices to hold steady in 2025. People paid $45,462 on average for a new vehicle in May, according to J.D. Power.

Ford reported a 16% increase in May compared with a year earlier, bolstered by an "employee pricing" discount program.

Toyota said May sales grew 11%, as a result of a sharp increase in hybrid and sedan sales. The Japanese carmaker imports around 45% of the vehicles it sells in the U.S. from factories outside the country and has said U.S. tariffs added $1.25 billion to its costs in April and May.

Honda reported a 7% gain in sales, despite a sharp increase in imported car sales.

Korean automakers Hyundai and Kia said sales rose 8% and 5%, respectively.

Mazda, a Japanese brand that relies heavily on imports, saw its sales plunge 19%.

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(END) Dow Jones Newswires

June 03, 2025 15:52 ET (19:52 GMT)

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