US November Auto Sales Drop 6.3 Percent Amid Affordability Squeeze
New vehicle sales in the United States fell 6.3 percent in November compared to the prior year, totaling 1.21 million units as elevated prices and financing rates deterred buyers. Electric vehicles bore the brunt, with deliveries plunging 28 percent to 78,000 amid the absence of federal tax credits that expired in September. Hybrids provided a counterbalance, rising 12 percent to 142,000 units, while overall inventory climbed to 2.8 million vehicles, up 15 percent from October levels.
Cox Automotive tracked the downturn across 16 brands, noting transaction prices averaged $48,250, a 2.1 percent increase year-over-year and 0.8 percent higher than October. Incentives reached $2,450 per vehicle, the highest since March, yet affordability metrics hit a low with only 16.2 percent of households able to finance a new car under $500 monthly. General Motors reported 188,300 sales, down 5 percent, while Toyota moved 171,600 units, off 8 percent, and Ford logged 162,800, a 2 percent decline. Stellantis fared worst at 109,200 units, sliding 18 percent.
Electric vehicle market share contracted to 6.4 percent from 9.2 percent in November 2024, per Wards Intelligence data, as Tesla deliveries dropped 15 percent to 45,000 amid production adjustments at its Austin facility. Rivian and Lucid saw steeper declines of 22 percent and 31 percent, respectively, totaling 4,200 units combined. Ford’s Mustang Mach-E bucked the trend with a 5 percent gain to 3,800 units, supported by price cuts of up to $8,100. Battery electric vehicles now represent 4.8 percent of sales, down from 7.1 percent a year ago.
Hybrid gains stemmed from models like the Toyota RAV4 Hybrid, which sold 38,500 units, up 18 percent, and the Honda CR-V Hybrid at 32,000, rising 14 percent. Plug-in hybrids held steady at 2.3 percent share, with 28,000 deliveries led by the Toyota Prius Prime’s 12 percent increase to 9,200. Cox Automotive chief economist Jonathan Smoke attributed the hybrid surge to fuel savings of 35 percent over gas counterparts, averaging 42 miles per gallon combined. Traditional internal combustion engines captured 91.3 percent of the market, unchanged from October.
Light trucks dominated with 82 percent of sales, up from 79 percent in November 2024, as compact SUVs like the Honda CR-V moved 28,400 units despite a 3 percent dip. Pickup trucks fell 4 percent to 211,000 units, with the Ford F-Series at 64,500, down 1 percent, and Chevrolet Silverado at 42,000, off 6 percent. Sedan volumes shrank to 3.7 percent share, totaling 45,000 units, highlighted by the Toyota Camry’s 22,000 sales, a 9 percent decline.
Projections for full-year 2025 sales now stand at 15.9 million units, down from an earlier forecast of 16.2 million, according to J.D. Power. December incentives could average $2,800 per vehicle, per Edmunds analysis, as dealers clear 2025 models ahead of 2026 introductions. Affordability challenges persist with 62-month average loan terms and 7.1 percent APRs for new vehicles, squeezing entry-level buyers. This month’s figures signal a broader market contraction, with recovery hinging on interest rate cuts projected for early 2026 by the Federal Reserve.
