• Spyne
  • Posts
  • Tariffs, Trends & Turnarounds: April's Auto Market Breakdown

Tariffs, Trends & Turnarounds: April's Auto Market Breakdown

Your comprehensive rundown of the latest developments impacting dealerships.

Author

Kshitij Rawat
April 15, 2025

As the U.S. auto industry navigates rising tariffs, supply chain shifts, and evolving consumer demand, dealerships are feeling the pressure — and the opportunity. This week’s edition brings you fast, digestible updates on everything that matters: sales trends, pricing impacts, top dealer rankings, and more.

Whether you're on the sales floor, in marketing, or managing operations — this is your quick edge to stay informed and ahead.

US Dealerships Brace for Upcoming Slump

U.S. car dealerships are seeing a surge in buyers rushing to beat President Trump’s 25% auto tariffs. Dealers like Hawk Auto Group warn that if manufacturers pass costs to consumers, sales could drop by 20%. Tariffs will affect vehicles from Europe, Japan, South Korea, Mexico, and Canada, with price hikes estimated at $4,000–$10,000 per car — and up to $12,000 for EVs. “When prices go up, sales go down,” said CEO John Crane.

Cox Automotive Reports on Market Trends

Cox Automotive's Auto Market Report indicates a slight increase in new-vehicle inventory, though levels remain lower compared to previous years. On the other hand, used vehicle supply is tightening, with stability in retail prices but fluctuation in wholesale prices.

Tesla Faces Challenges Amid Tariffs, Brand Issues

Tesla bull Dan Ives slashed his 12-month price target from $550 to $315, citing Trump’s trade war and Elon Musk’s political ties as a “perfect storm.” Tesla shares fell 6% to $239.43 on Monday amid tariff-driven market volatility. Ives warned the brand is “suffering by the day” as it becomes a political symbol. “This situation is not sustainable,” he said, despite backing Musk and Tesla for over a decade.

Affordable Cars Disappearing Fast Amid Rising Costs

The average price of new cars is approaching $50,000, driven by increased vehicle complexity and supply chain disruptions. New tariffs are expected to add up to $6,000 per vehicle, potentially leading to the extinction of affordable cars in the U.S. market. ​

Top Dealership Groups List by Automotive News

​The 2025 Automotive News list of the top 150 dealership groups in the U.S., ranked by 2024 new-vehicle sales, highlights the leading auto retailers. Leading the race are Lithia Motors​, AutoNation, and Penske Automotive Group.​

From changing trade policies to dealership news and pricing outlooks, staying agile has never been more critical. We’ll be back next month with sharper insights, deeper analysis, and the stories shaping the future of automotive retail.

Got a topic you want us to cover or a success story to feature? Hit reply — we’d love to hear from you.

Tweet of the Week