Automakers reported impressive sales figures in March and the first quarter of 2023, showcasing resilience ahead of anticipated tariffs on auto imports. Ford Motor Company had a reason to celebrate, too, as the manufacturer announced March total sales were up 10%. This increase was driven almost entirely by the wildly popular F-150 pickup and EVs. This increase comes just days before President Donald Trump follows through with a 25% tariff on imported autos. Scheduled to go into effect on April 3, this move is sure to fundamentally shake up the industry.
In March, Ford’s sales tripled, thanks to a storming showing from its electric vehicle range. The company is trying to respond to a huge surge in demand for these models. Electric vehicle sales rebounded, up 44.1% from last month. This stellar increase represented just shy of 50 percent of all sales volume Ford saw for the month. Ford’s first quarter total sales fell by 1% overall, despite this positive news. This continued decline represents a very low bar of success at best.
Nissan joined in this positive trend with a 5.7% overall sales increase in the first quarter. The Japanese firm’s volume Sentra sedan and Kicks compact crossover were critical in accelerating these increases. These models resonated with consumers who sought dependable, no-nonsense, efficient models in a volatile and uncertain market.
In fact, GM posted the strongest-ever quarter of return on invested capital for any automaker. Overall U.S. sales were up 17% in the first quarter. Not surprisingly, GMC saw a whopping 18% increase in sales, making the brand’s 4th quarter best on record. In that time, GMC was able to almost quadruple sales of its electric models. Electrified vehicles accounted for close to a third of the brand’s overall sales.
Kia America hopped on the bandwagon with a national best 13.1% leap in March. They revised sharply upward their well above expected 10.7% increase for Q1. In fact, March saw the automaker’s electrified vehicle sales soar by an astounding 89.1%. These vehicles made up nearly a third of all car sales for the month.
As the auto industry braces for the upcoming tariffs affecting both vehicle imports and auto parts, manufacturers are keenly aware of the changing landscape. As it stands, these tariffs will be implemented on April 3. They’ll slowly be increasing to cover applicable auto parts over the next few weeks, reaching their peak on May 3. This upcoming shift presents new risks and hurdles to automakers who are already operating in a high-stakes environment.
