In 2025, the U.S. auto industry saw a 2% increase in total sales to 16.2 million units, the best year since 2019. Despite high prices and financing costs, early-year demand for trucks and SUVs drove growth, but the market slowed in the fourth quarter due to cooling electric vehicle (EV) demand post-expiration of federal tax credits. Car prices hit a record average of $50,326 in December 2025.

Top automakers in 2025 were General Motors, delivering 2.85 million vehicles, Toyota Motor with 2,518,071 vehicles, and Ford selling 2.2 million vehicles. GM extended its leadership in full-size pickups and ranked as the nation’s second-largest EV seller. Toyota saw a rise in sales, while Ford’s F-Series remained the best-selling truck.

U.S. EV sales had a rollercoaster year in 2025, with early demand spiking before slowing in the fourth quarter. Tesla faced its second consecutive annual delivery decline, selling roughly 1.64 million vehicles in 2025. Legacy automakers adjusted to cooling EV demand by “right-sizing” their EV plans and focusing on higher-margin vehicles.

Looking ahead to 2026, the U.S. auto industry faces caution due to a slower labor market and weaker job growth affecting consumer confidence. Government policy changes and the evolving EV market will impact the industry. Artificial intelligence investments will transform efficiency, but competition may intensify. New-vehicle sales are projected to fall to about 15.8 million units in 2026.

Zacks Research identifies a little-known satellite-based communications firm as a top stock pick with the potential to double in value. Analysts forecast significant revenue growth in 2025 for this company in the trillion dollar space industry. The industry remains focused on strategic positioning and transformation in 2026.

Read more at Nasdaq: U.S. Auto Industry 2025 Review and What to Expect in 2026