The U.S. automotive market is set to reach its highest sales volume since 2019, with Cox Automotive projecting 16.3 million new-vehicle units sold in 2025, up from 16.0 million in 2024 . This growth is fueled by what Jonathan Smoke, Cox’s chief economist, calls a “Goldilocks economy”—not too cold, not too hot—backed by 2.6% GDP growth, lower interest rates, and steady job markets .
Electrified vehicles are stealing the spotlight, accounting for 25% of total sales. Pure EVs will hit a 10% market share, up from 7.5% in 2024, driven by 15 new models, expanded charging infrastructure, and state incentives offsetting potential federal policy shifts . Hybrids and plug-ins make up the remaining 15%, pushing ICE vehicles to a record-low 75% share . Used-car sales are also thriving, expected to reach 20.1 million units, the best since 2021 .
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