Full-year US retail gross sales rose 4% regardless of December declines linked to tariff issues and EV tax credit score expiration
US new car retail gross sales rose 4% in 2025 to achieve 13.6 million items, in line with a joint forecast from J.D. Energy and GlobalData, regardless of vital volatility brought on by tariff issues and adjustments to electrical car (EV) laws. December retail gross sales fell 7.4% yr over yr to 1.22 million items, with EV market share dropping to six.6% from 11.2% in December 2024 following the expiration of federal tax credit in September.
Customers spent US$620bn on new autos in 2025, up 5.8% from the earlier yr. The typical transaction worth in December reached US$47,104, up 1.5% yr over yr, whereas common month-to-month finance funds hit a document US$776 for the month. The typical rate of interest for brand spanking new car loans fell 32 foundation factors from a yr in the past to five.84%.
In an announcement, Thomas King, President of OEM Options at J.D. Energy, mentioned: “December caps a yr marked by volatility, because the trade continues to cope with the implications of import tariffs and adjustments to electrical car laws. To say it’s been a gross sales curler coaster of a yr can be an understatement.”
King famous that tariff-related issues drove a 173,000-unit gross sales leap between March and April, whereas 304,200 EV purchases had been pulled ahead earlier than the September tax credit score expiration. Affordability pressures persist, with 84-month mortgage phrases accounting for 10.1% of financed gross sales in December—the second-highest degree on document for the month.
Hybrids continued to achieve floor, rising to fifteen% of retail gross sales in This fall 2025, up 2.5 proportion factors yr over yr, whereas inside combustion engine autos accounted for 78.1% of December gross sales, up 4.6 proportion factors from a yr in the past.
Supply: J.D. Energy
