Top Automakers Report Lower US Sales Amid Affordability Woes

GM, Toyota see declines as economic uncertainty, high prices and interest rates keep buyers on the sidelines

Apr. 1, 2026 at 5:19pm

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General Motors and Toyota, two of the top automakers in the US, reported lower first-quarter sales as economic uncertainty, high borrowing costs, and elevated vehicle prices continue to impact consumer demand. The industry as a whole is expected to see a 6.5% drop in Q1 sales, with EV sales projected to fall around 28% compared to last year.

Why it matters

The decline in auto sales reflects broader economic challenges facing consumers, including rising fuel costs, interest rates, and sticker prices. This could have ripple effects across the industry, potentially leading to higher discounts and competition among dealers as inventory levels rise.

The details

GM saw a nearly 10% drop in sales to 626,429 units, impacted by winter storms and an unfavorable comparison to a strong surge in the year-ago period. Toyota reported a marginal sales decline to 569,420 units, though it maintained steady demand for crossover SUVs like the RAV4. Other automakers like Mazda also reported double-digit sales drops, while Hyundai and Honda saw increases buoyed by SUV and hybrid models.

  • In the first quarter of 2026.

The players

General Motors (GM)

One of the top automakers in the United States, reporting a nearly 10% drop in first-quarter sales.

Toyota

The second-largest automaker in the US, reporting a marginal sales decline in the first quarter.

Cox Automotive

An industry expert who expects overall first-quarter US auto sales to drop 6.5% and annual sales to drop 2.6%.

Charlie Chesbrough

Senior economist at Cox Automotive, who cited the loss of EV tax credits, elevated interest rates, and high vehicle prices as factors leading to a slower sales pace.

Scott Bell

Vice president, global, at Chevrolet, who expressed optimism about the carmaker's outlook for the year despite the higher fuel prices.

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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, 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, Cox Automotive

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

— Jason Hoff, CEO, Mercedes-Benz North America

“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, Cox Automotive

What’s next

Analysts will continue to monitor the impact of economic factors on consumer demand and automaker sales throughout the year, as the industry navigates challenges like rising fuel costs and inventory levels.

The takeaway

The decline in auto sales reflects broader economic pressures facing consumers, including affordability concerns due to high interest rates, vehicle prices, and fuel costs. This could lead to more competition among dealers and potential discounts for buyers, as automakers work to adapt to the changing market conditions.