Automakers See Sales Surge in April as Car Buyers Fear Higher Prices Later

It appears the fear of price hikes related to tariffs motivated consumers to purchase new vehicles last month. Several major automakers, including Ford, GM, Hyundai, and Kia, reported significant increases in new car purchases in the U.S. during April.

Compared to April 2024, Ford saw a 16% surge in sales last month. As of April 30, Ford sold 208,675 new vehicles, crushing the 179,588 that consumers bought a year ago. Part of the sales increase can be credited to the auto company’s “employee pricing” for consumers campaign, which Ford launched just as President Trump’s 25% tariff on imported vehicles went into effect.

Also jumping double digits were sales reported by General Motors. The Detroit-based auto manufacturer confirmed a 20% rise in sales, reaching 267,051 units sold.

Hyundai sales jumped 19% in April. Sales of Kia vehicles went up 14% when compared to the same period in 2024. Rival automaker Toyota reported a 10% uptick.

“April results are dominated by the prospect of future vehicle price increases due to tariffs,” said J.D. Power’s Thomas King, per CNBC.

Automakers Getting Settled in With Higher Tariffs

With prices adjusting to compensate for higher import costs and vehicle inventories falling, the initial panic buying has settled down. The rush to buy seemingly fizzled out by the end of April as consumers and businesses got used to the idea of higher tariffs.

“The economy and auto market are transitioning to a world with higher tariffs on imports,” Cox Automotive Chief Economist Jonathan Smoke said, per CNBC. “The first phase of frenzy in the retail vehicle market seems to have already passed as April is ending with less momentum than it began.”

President Trump’s tariffs on foreign cars and parts will cost General Motors between $4 billion and $5 billion in 2025, according to CEO Mary Barra. However, the company leader doesn’t intend to make consumers pay for it.

“We believe … pricing is going to stay at about the same level as it is,” Barra told CNN. “Pricing changes in our industry at least monthly, and sometimes more frequently. We’re going to respond to the market.”

Without passing the fees off to buyers, the costs of the tariffs will erode GM’s bottom line. As a result, the company has trimmed its full-year earnings guidance, telling investors to anticipate lower profits this year.