Car manufacturers achieve record sales even with potential import duties approaching.
As Trump's "Freedom Day" approached, Americans didn’t remain idle; they were busy purchasing vehicles, possibly aiming to cut costs. Consequently, multiple car manufacturers surpassed their sales targets and established fresh brand milestones. Even though these positive outcomes might not last long-term, a strong first quarter could mitigate some of the financial setbacks expected from what will probably be a tumultuous year across nearly all automotive companies.
Subaru, Mazda, and others break their previous March sales records with several hitting all-time high monthly sales figures.
Despite many automotive manufacturers experiencing profitable periods, such as Mitsubishi (which saw an 11% increase compared to the previous year) and BMW (with a rise of 3.7% since 2024), several original equipment manufacturers achieved unprecedented milestones during this economically volatile time. Subaru marked a historic high for March and recorded its most successful sales month ever, capping off 32 successive months of increasing sales figures. In the first quarter, their sales climbed by 9.1%. The company registered selling 71,478 vehicles in March, surpassing the prior year’s total of 61,297 units and obliterating the former monthly peak of 70,039 established back in August 2019. Meanwhile, Mazda had reason to celebrate too with a record-setting performance, having moved 43,097 cars and SUVs.
Two Korean automakers also had notably strong months. Hyundai surpassed its previous March record by selling 87,019 vehicles, marking the second highest monthly sales figure ever recorded for the brand. Meanwhile, Kia sold 78,540 cars during the same period. In contrast, Honda saw exceptional success primarily with their trucks and SUVs, achieving their most lucrative month ever in these segments by selling a total of 98,374 units.
The hits don't stop
Although these record-breaking months stand out individually, certain car manufacturers have further exceeded expectations throughout the entirety of the first quarter due to strong performances in March. Honda achieved this as well, thanks to robust sales in trucks and SUVs, setting both a quarterly record and an all-time high for electric vehicles. In March alone, 45,831 newly sold electrified Hondas were delivered to customers. Meanwhile, Hyundai reported selling 203,554 units, enabling them to mark a record Q1 along with neighboring Kia, which sold 198,850 automobiles, including cars, trucks, and sport utility vehicles.
Final thoughts
Sharp-eyed observers might recognize that each of these scorching performers shares something significant: their homes lie beyond U.S. borders. It’s also noteworthy that during Q1 of 2025, two major brands—Stellantis and Tesla—notched lower sales figures compared to others. Specifically, Tesla experienced a drop of 13%, whereas overall U.S. Stellantis sales fell by 12%. This decline includes an uptick of 14% in Ram 1500 sales which did little to offset the broader trend. The introduction of tariffs could potentially offer some benefit to American car manufacturers, though this edge would be quite minimal since most companies still depend heavily on international supply chains for critical parts. Only time will reveal whether foreign auto producers can maintain their lead despite higher costs for consumers.