US auto sales seen rising 6% in Oct quarter as EV demand surges

US auto sales are expected to rise about 6 per cent in the third quarter from a year ago, as consumers were seen pulling forward their electric vehicle purchases before the end of certain tax credits, while demand for SUVs and crossovers remained steady. 

Market research firm Cox Automotive expects US new vehicle sales to be about 4.14 million units for July-September, compared with 3.9 million in the same period last year. 

President Donald Trump's One Big Beautiful Bill ended the $7,500 tax credits for new EV purchases on Sept. 30, leading to a temporary surge in sales during the quarter. 

 

Trump's tariffs have also trickled down to impact the industry with higher prices on parts and other components, although demand for new vehicles has so far held steady. 

Demand for mid-size crossovers and pickup trucks has remained strong in September, another market research firm Cox said in a report. 

However, new vehicle sales are expected to wane in the coming months, as companies pass on their increased costs, Cox analyst Charlie Chesbrough said in the report. 

"More tariffed products are replacing existing inventory, and prices are expected to be pushed higher as automakers pass along higher import costs," Chesbrough said. 

General Motors is expected to hold on to its top spot during the quarter, followed by Toyota Motor's North America unit and Ford, according to Cox. Tesla's sales are expected to drop by nearly 6 per cent. 

The average retail price for new vehicles in September was expected to touch $45,795, up $1,310 from last year, market data provider J.D. Power had said last month. 

In July and August, average hikes from a year ago were $938 and $985, respectively. 

S&P Global Mobility expects auto demand to taper off towards the end of the year, hurt by affordability concerns, lower EV sales volumes and expected economic slowdown over the next few quarters.