The end of 2024 marks renewed uncertainty for the auto industry. Third-quarter new vehicle sales dropped, marking the second consecutive quarterly decline. Production estimates fell accordingly and automakers are responding by cautiously managing inventories.
As the industry braces for 2025, affordability continues to dominate. Proposed tariffs could escalate pricing pressure, while the expiration of federal electric vehicle (EV) tax credits threatens to dampen demand further. Yet, easing interest rates might offer a glimmer of hope, particularly for premium vehicle sales.
