Top Automakers Report Lower Q1 Sales in U.S. Amid Affordability Concerns

GM, Toyota, and Mazda see declines, while Hyundai and Honda see gains, as high prices and interest rates impact consumer demand.

Apr. 1, 2026 at 6:09pm

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Major automakers General Motors, Toyota, and Mazda reported lower first-quarter sales in the U.S. market, citing economic uncertainty, high borrowing costs, and elevated vehicle prices that are keeping buyers on the sidelines. However, Hyundai and Honda saw sales gains, buoyed by demand for their SUVs, trucks, and hybrid models. The U.S.-Israeli war on Iran has added to the strain on the market, with rising oil prices posing a risk to consumer spending.

Why it matters

The decline in sales for some of the top automakers reflects broader economic challenges, including high inflation, rising interest rates, and the impact of the U.S.-Israeli conflict on oil prices. This could have ripple effects across the automotive industry and the wider economy, as consumer spending power is constrained.

The details

GM reported a nearly 10% drop in sales to 626,429 units, hit by winter storms early in the quarter and an unfavorable comparison due to a strong surge of sales in the year-ago period. Toyota reported a marginal drop in sales to 569,420 units, but held on to its second-place spot, helped by steady demand for crossover SUVs like the RAV4. Mazda also reported about a 14% drop in its quarterly sales. In contrast, Hyundai and Honda reported higher numbers, buoyed by demand for their SUVs, trucks, and hybrid models.

  • GM and Toyota reported their first-quarter 2026 sales on April 1, 2026.
  • The U.S.-Israeli war on Iran has been ongoing, contributing to rising oil prices.

The players

General Motors (GM)

One of the largest automakers in the United States, known for brands like Chevrolet, Buick, GMC, and Cadillac.

Toyota

A Japanese multinational automotive manufacturer, one of the world's largest car companies.

Mazda

A Japanese multinational automaker known for its lineup of sedans, SUVs, and sports cars.

Hyundai

A South Korean multinational automotive manufacturer that has seen growing success in the U.S. market.

Honda

A Japanese multinational corporation known for its diverse lineup of automobiles, motorcycles, and power equipment.

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What they’re saying

“The loss of EV tax credits, coupled with ongoing elevated interest rates and vehicle prices will lead to a slower pace.”

— Charlie Chesbrough, Senior economist at Cox Automotive

“Pure EV shopping interest has climbed to its highest point so far in 2026. We've had peaks before, so while this trend is encouraging, we're not in uncharted territory.”

— Erin Keating, Senior director of economy and industry insights at Cox Automotive

“When you have more vehicles than you have customers, it is going to be very competitive.”

— Jason Hoff, CEO of Mercedes-Benz North America

What’s next

Analysts will continue to monitor the U.S. automotive market for signs of recovery or further declines in sales, as economic conditions and consumer sentiment evolve.

The takeaway

The sales declines reported by major automakers highlight the challenges facing the U.S. automotive industry, as high prices, rising interest rates, and geopolitical tensions impact consumer demand. Automakers will need to adapt their strategies to address these headwinds and remain competitive in the market.