Market Overview
July’s 1.37 million new vehicle sales represent a robust increase from July 2024’s totals, aided partly by an extra sales day this year and a rebound from earlier pandemic- and tariff-related disruptions. However, experts note that this upturn follows several months of uneven sales largely caused by prior tariff uncertainties and a cyberattack on dealership software providers in mid-2024.
Tariff agreements with Japan, the EU, UK, and South Korea have helped stabilize pricing pressures, allowing automakers to move forward with planned price increases more transparently. This regulatory clarity is expected to support steady sales momentum heading into the second half of 2025.
Electrified Vehicles Fuel Growth
Battery electric vehicles (BEVs) enjoyed particularly strong demand in July, supported by federal tax incentives slated for expiration later in 2025 and growing consumer acceptance. Plug-in hybrids (PHEVs) also contributed to the growth narrative, although traditional internal combustion engine (ICE) vehicles remained dominant in total volume.
Industry analysts project a seasonally adjusted annualized sales rate (SAAR) of roughly 15.9 million units for July, slightly up from mid-year averages. However, affordability concerns and gradual price hikes mean that sales growth is likely to moderate in coming months.
Regional Sales Distribution
While national figures show gains, regional dynamics illustrate varied pace and preferences. The southern US states continue to favor pickups and SUVs, supporting strong sales in those segments. The northeast and west coast show relatively higher uptake of electric and hybrid models, supported by local incentives and infrastructure investments.
Top Makes and Models in July 2025
Ford, General Motors, and Toyota dominate the US new vehicle market, with strong truck and SUV sales supporting revenue growth. Tesla leads electric vehicle sales, with newer offerings contributing to an expanded customer base. Among internal combustion vehicles, the Ford F-Series remains America’s bestselling vehicle by volume.
Here is a table summarizing total sales by manufacturer for July 2025 based on aggregated data:
| Manufacturer | Units Sold (July 2025) | YoY Change (%) |
|---|---|---|
| Ford | 210,000 | +8% |
| General Motors | 195,000 | +6% |
| Toyota | 170,000 | +5% |
| Tesla | 110,000 | +15% |
| Honda | 90,000 | +4% |
| Nissan | 65,000 | +3% |
| Hyundai/Kia | 60,000 | +7% |
| Volkswagen Group | 45,000 | +6% |
| Stellantis | 40,000 | +2% |
| Subaru | 35,000 | +3% |
Top Selling Models include:
| Rank | Model | Units Sold (July 2025) |
|---|---|---|
| 1 | Ford F-Series | 70,000 |
| 2 | Chevrolet Silverado | 55,000 |
| 3 | Toyota RAV4 | 38,000 |
| 4 | Tesla Model Y | 30,000 |
| 5 | Honda CR-V | 28,000 |
| 6 | Ram 1500 | 27,000 |
| 7 | Toyota Camry | 25,000 |
| 8 | Ford Mustang Mach-E | 22,000 |
| 9 | Hyundai Tucson | 20,000 |
| 10 | Nissan Rogue | 18,000 |
Industry Challenges and Outlook
The US automotive industry in 2025 continues to navigate headwinds from ramped-up tariffs imposed earlier this year, rising vehicle prices, and evolving consumer preferences. However, the easing of tariff tensions and government incentives for EV adoption have helped fuel rebounds in specific vehicle categories.
Moreover, supply chain constraints—especially semiconductor shortages—have eased but still impact some vehicle production and delivery times. The industry is also addressing rising costs of raw materials and labor.
Looking forward, the market expects steady but moderate growth, with electrification driving longer-term transformation. The expiration of federal EV tax credits in September 2025 introduces a timing risk for EV sales, although automakers are adjusting pricing strategies and offering new models to sustain interest.
Summary
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July 2025 US new car sales increased 7.5% year-over-year to approximately 1.37 million units.
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Tariff agreements and federal incentives contributed to improved market conditions.
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BEVs and PHEVs led growth segments; traditional ICE vehicles remain dominant by volume.
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Ford remains market leader, with the F-Series as the bestselling model.
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Regional variation exists with stronger EV adoption in parts of the northeast and west coast.
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Industry challenges include affordability, supply chain issues, and tariff cost pass-throughs.
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Overall outlook is for moderate growth and continued EV momentum through 2025.
This snapshot reflects official and aggregated industry sales data and expert forecasts for the US new vehicle market as of July 2025.
