U.S. Light Vehicle Sales See Sharpest Decline in Nearly Five Years
(MENAFN) U.S. light vehicle sales saw their steepest decline in May in nearly five years, following a rush by consumers in the previous months to make purchases ahead of expected price hikes triggered by President Donald Trump’s tariffs on imported vehicles.
According to Wards Intelligence, the seasonally adjusted annual rate for light vehicle sales fell sharply to 15.65 million units in May, down from a revised 17.25 million in April and 17.83 million in March.
May’s drop of roughly 1.6 million units marked the steepest decline since the early days of the COVID-19 pandemic in April 2020. This decrease came after a surge in sales in March, which reached their highest levels since March 2021.
Despite this overall decline, both Ford and Hyundai reported higher sales in the U.S. market for May. These gains came as many consumers continued to rush to buy vehicles, fearing that President Trump's 25 percent tariffs on automotive imports, which took effect on April 3, would lead to rising prices.
Telemetry, an automotive advisory firm based in the Detroit area, warned that if the tariffs remain in place, auto sales in the U.S. and Canada could drop by as much as 1.8 million vehicles this year, with little to no growth expected over the next decade.
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