In the U.S. market last year, sales results for automakers diverged depending on their pricing strategies. Toyota and Hyundai Motor·Kia, which did not reflect the high tariffs imposed by the Donald Trump administration in their prices, saw sales rise sharply, while Volkswagen, which raised prices, posted a double-digit decline in sales.
Toyota North America said on the 5th (local time) that last year's sales rose 8.1% from a year earlier to 2,147,811 units. That is the highest figure since 2017. The flagship sedan models Corolla Hybrid and Camry Hybrid, and sport utility vehicles (SUVs) such as the Corolla Cross, 4Runner Hybrid, and RAV4 all set successive sales records.
Hyundai Motor and Kia sold 901,686 and 852,155 units, respectively, last year. That was up 7.8% and 7.0% from a year earlier, respectively. Both brands set sales records for the third consecutive year.
Elsewhere, Honda sold 1,297,144 units, up 0.4% from a year earlier, and Nissan rose 0.9% to 873,307.
In contrast, Volkswagen's sales plunged 13% last year to 329,813 units. For the first time in three years since 2022, sales turned downward. Volkswagen had grown 9.3% in 2023 and 15.0% in 2024.
U.S. auto outlet Electrek said, "The overall U.S. auto market showed stable growth last year, but Volkswagen posted weak results." According to U.S. market research firm Omdia, auto sales last year rose 2.4% from a year earlier to 16.2 million units.
The factor that split the fortunes of automakers was whether they raised prices. After U.S. President Donald Trump imposed a 25% tariff on all imported cars last April, Volkswagen passed it on to consumer prices. In September, Volkswagen raised model prices by 2.9% to 6.5%.
According to Volkswagen, as of the third quarter last year, locally produced units in the United States (200,000) were less than half of imports from Mexico (287,000) and Germany (240,000). Its structure leaves it highly exposed to tariff effects.
By contrast, other brands such as Toyota and Hyundai Motor·Kia held the line without raising prices last year. As a result, tariffs have not yet had a major impact on U.S. car prices. U.S. market research firm JD Power said the average new-vehicle retail price in December was $47,104 (about 68 million won), up just 1.5% from the same period a year earlier.
However, Hyundai Motor·Kia and Toyota are expected to raise prices this year to reflect tariffs. In Toyota's case, about 23% of U.S. sales are from Japan, and 28% are supplied from Mexico and Canada.
David Christ, head of Toyota brand's North American operations, said, "Although the U.S.-Japan trade talks lowered the tariff to 15%, it will be difficult to keep prices unchanged," adding, "No brand can keep holding out with prices that do not reflect tariffs." Toyota signaled there could be two to three price hikes this year.
Accordingly, the U.S. auto market is highly likely to contract this year. U.S. market research firm Cox Automotive predicted that annual auto sales will fall 2.4% as demand eases due to slower economic growth and the end of electric-vehicle subsidies. U.S. auto information firm Edmunds also forecast that sales will remain flat or edge down this year due to higher tariff-related expenses and economic uncertainty.