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In April 2025, the automotive market experienced a series of notable changes. The month saw a total of 26 selling days, one more than in April 2024.
The shift towards electric and hybrid vehicles continued, with EVs expected to account for 8.7% of sales, up 0.2pp from a year ago. Full-hybrid sales are projected to reach 12.6%, an increase of 2.9pp from last year. Plug-in hybrid vehicles are on pace to make up 2.3% of sales, gaining 0.4pp from last April.
The EV market has seen significant growth, with EV inventory at a healthy 6.5% of the industry, a 50% increase from a year ago. This growth is attributed to a variety of factors, including the $7,500 federal EV tax incentive and increased EV selection from major brands in popular segments.
Despite this growth, internal-combustion engine vehicles are still dominant, accounting for 76.1% of new-vehicle retail sales, a decrease of 3.8pp from a year ago. Trucks and SUVs are on pace to account for 82.1% of sales, up 2.5pp from April 2024.
Fleet sales for April 2025 are expected to total 235,071 units, a decrease of 7.8% from a year ago. Fleet volume is expected to account for 15.5% of total light-vehicle sales, down 3.1pp from a year ago.
Total new-vehicle sales are expected to increase by 10.5% year on year, registering 1,519,897 units. Retail sales of new vehicles are expected to reach 1,284,826, a 14.7% increase from the same month last year. Retail inventory levels in April 2025 are at 2.15 million units, a 21.4% increase from April 2024.
The average new-vehicle retail transaction price in April 2025 is expected to reach $45,764. The average used-vehicle price is trending towards $28,725, up $200 from a year ago.
The average interest rate for new-vehicle loans in April 2025 is expected to be 6.8%, down 0.18pp from a year ago. However, average monthly finance payments in April 2025 are on track to be $742, the highest on record for the month of April. This can be attributed to the higher transaction prices.
The average time a new vehicle remains in the dealer's possession before sale in April 2025 is expected to be 52 days, up from eight days a year ago. This increase in days to sell may be due to the market absorbing the pull-ahead demand caused by tariffs.
Tariffs significantly impacted new-vehicle sales in April 2025 by causing consumers to accelerate their purchases ahead of the tariff implementation. This pre-buy surge temporarily boosted sales figures during that period. However, it led to lower sales in the months following April, as the market absorbed the pull-ahead demand.
In summary, April 2025 saw a shift towards electric and hybrid vehicles, with the market absorbing the impact of tariffs and inventory constraints. The market is expected to rebound later in the year.
- The growth in data-and-cloud-computing technology has been instrumental in the automotive industry, allowing for advanced features in electric and hybrid vehicles such as remote diagnostics and over-the-air updates.
- In the finance sector, the increase in new-vehicle retail sales indicates a growing consumer confidence, marked by a record-high average monthly finance payment of $742 in April 2025.
- As the automotive industry moves towards electric vehicles, transportation companies are investing heavily in innovation, with advancements in battery technology and autonomous driving solutions largely driven by technology companies.
