Slowing auto sales stoke concern over near-record car prices

(Bloomberg) -- High prices threaten to send US auto sales into decline this year as middle-class consumers shy away from new-vehicle purchases with stickers near record levels.

Major carmakers including General Motors Co., Honda Motor Co. and Hyundai Motor Co. said sales fell during the final three months of the year. Although industrywide volume likely surpassed 16 million vehicles for 2025, the annualized rate slowed in the fourth quarter to an estimated 15.6 million, down more than 5% from the third quarter, according to industry researcher Cox Automotive.

Automakers are contending with consumer angst about the cost of living that persisted throughout the last year, as well as curtailed government support for electric vehicles and new tariffs that are pushing up costs. Randy Parker, Chief Executive Officer of Hyundai’s North America business, said those issues will continue to weigh on the industry this year.

-snip-

New-car sales among households with annual incomes of $75,000 or less have plunged 30% since 2019, while sales fell 7% among families with incomes between $75,000 and $150,000, according to Cox. Deliveries meanwhile soared 45% among households with annual incomes of $150,000 or more in the same period.

https://www.msn.com/en-us/money/other/slowing-auto-sales-stoke-concern-over-near-record-car-prices/ar-AA1TBgDj