US second-quarter auto sales rise, tariffs may drive up prices

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By Nathan Gomes

(Reuters) -U.S. auto sales rose in the second quarter, driven by demand for gasoline-powered vehicles, even as the industry braces for a bumpy latter half to the year as tariffs imposed by the Trump administration are likely to push prices higher.

General Motors maintained its top position, reporting a 7% increase in quarterly auto sales, fueled by demand for lower-cost crossover SUVs such as the Chevrolet Trax.

Crosstown rival Ford Motor reported a 14.2% rise in quarterly sales, while Toyota Motor’s North American unit posted a 7.2% increase.

The tariffs initially accelerated demand among price-sensitive buyers, but that boost is expected to diminish as higher prices take effect.

The impact is expected to be most pronounced for budget-friendly imported models, including Ford’s compact Maverick pickup and GM’s Trax, raising affordability concerns as the average new-vehicle price approaches $50,000.

“Much of the pull-ahead demand that fired up sales in April and May has now been satiated, so consumer demand is expected to be weaker in the coming months,” said Charlie Chesbrough, senior economist at Cox Automotive.

Hyundai Motor’s sales notched a 10% rise in the quarter from last year on the back of robust consumer demand for its hybrid and crossover lineup.

“The second half is going to be challenging. There’s a lot of headwind out there. Interest rates are still very high, obviously, you’ve got the political swirl,” said Randy Parker, CEO of Hyundai Motor North America.

Higher vehicle prices are pushing many buyers toward the used market, according to Pat Ryan, CEO of car-shopping app CoPilot, though he expects conditions to become more challenging for shoppers in the months ahead.

(Reporting by Nathan Gomes, Nora Eckert and Utkarsh Shetti; Editing by Alan Barona and Tasim Zahid)