🗞️ Industry roundup:
FROM WARDS AUTO: Shifting gears: What car buyers really want in 2025
Consumer interest in hybrids is rising, with 26% of U.S. buyers preferring them for fuel savings and lower emissions, while BEV interest remains limited due to charging concerns. Brand loyalty is weakening, with 46% of U.S. consumers planning to switch brands in 2025, up from 34% in 2024, making strong dealer-customer relationships more critical. Meanwhile, 46% of buyers are now interested in purchasing directly from automakers online, pushing dealers to enhance customer engagement and digital experiences to stay competitive.
FROM AUTO REMARKETING: Report finds U.S. market hits ‘peak truck’ as consumers seek more affordability
SUV and truck preferences in the U.S. have declined slightly, with sedan interest rising to 29%, as affordability concerns push consumers toward cost-effective models. Despite an 8% expected price increase, new car interest is up 30%, while used car demand has dropped. EV and hybrid interest continues to grow, dealerships anticipate higher used-car and service profitability, and automakers are exerting more control over dealership operations amid political and regulatory uncertainty.
FROM AUTOBODY NEWS: Automakers report strong start to 2025 sales
Honda, Kia, Mazda, and Subaru all reported strong January 2025 sales, with several brands achieving record-breaking performances. Honda saw a 3.8% increase in sales, with record electrified vehicle sales, while Acura SUV sales rose 17.9% despite plant retooling. Kia posted its best January ever with 57,007 units sold, setting new records for five models, including the EV6 and Telluride. Mazda achieved its highest January sales, and Subaru continued its 30-month growth streak.
FROM CAR AND DRIVER: How Trump’s tariffs could affect the U.S. car market
President Trump has postponed a planned 25% tariff on imports from Canada and Mexico for 30 days, while a 10% tariff on Chinese imports has taken effect. If implemented, the tariffs could impact vehicle prices and supply chains, affecting models like the Chevy Equinox, Toyota Tacoma, and Honda Civic. Automakers with production facilities in Canada and Mexico, including GM, Ford, and Stellantis, may need to adjust operations in response to potential cost increases.
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