A frenzy of car buying took hold of the auto industry in March as consumers rushed to make purchases before President Trump’s proposed auto tariffs go into effect. Car manufacturers reported a surge in sales, with Hyundai, Ford, and General Motors all experiencing increases in March compared to the previous year.
Trump announced that 25 percent tariffs on imported vehicles would take effect on Thursday, with tariffs on imported auto parts to follow in May. Analysts predict prices of some vehicles may increase by over $10,000 to offset the new levies. This prompted buyers to flock to dealerships to take advantage of current prices before they rise significantly.
The shift towards electric vehicles and hybrids was also notable, with several carmakers reporting significant increases in sales of these environmentally friendly models. Sales of fully electric vehicles nearly doubled for General Motors, while Toyota reported a 44 percent increase in sales of hybrids and electric vehicles in North America. Ford also saw a rise in sales of hybrid vehicles during the first quarter.
Despite the uncertainty surrounding tariffs, car manufacturers are encouraging consumers to make purchases sooner rather than later. Randy Parker of Hyundai emphasized the importance of not waiting to buy tomorrow what you can buy today, hinting at potential price increases in the near future. With car prices expected to rise significantly due to the tariffs, consumers are rushing to secure deals and purchase vehicles before the cost becomes prohibitive.
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