From Yahoo Finance: 2025-06-05 13:37:00

Auto sales surged in May, but a “hangover” looms for the industry. Ford, Toyota, Honda, Hyundai, and Kia reported sales gains, but the seasonally adjusted annual rate of light vehicle sales dropped to 15.65 million units in May. Oxford Economics predicts weak sales through 2025, citing declining inventory, higher prices, and depressed consumer sentiment.

Chief US economist Ryan Sweet warns of a “hangover” in vehicle sales due to declining inventory, pessimistic consumers, and potential tariff impacts. Oxford Economics forecasts weak sales through 2025, with a bottom in Q1 2026. Edmunds survey shows 37% planning to buy sooner due to tariffs, but 25% are delaying purchases.

Despite recent sales gains, a “hangover” is expected for auto sales due to declining inventory, higher prices, and depressed consumer sentiment. Oxford Economics predicts weak sales through 2025, with a bottom in Q1 2026. Edmunds survey shows potential impact of tariffs on consumer behavior.



Read more at Yahoo Finance: ‘Hangover’ setting in for automakers with sales poised to go lower