July 1 (Reuters) - U.S. auto sales are set to rise in
the second quarter aided by sustained demand, but industry
experts forecast President Donald Trump's tariffs to pressure
prices in the months ahead.
Market research firm Cox Automotive expects U.S. new-vehicle
sales volume to climb about 1.7% to 4.18 million units in the
second quarter from a year ago.
"New vehicle affordability concerns are expected to worsen
in the second half of the year under potential upward pricing
adjustments," said Chris Hopson, principal analyst at S&P Global
Mobility.
General Motors ( GM ) is expected to hold its top spot in
the quarter, followed by Toyota Motor's ( TM ) North America
unit and Ford, according to Cox.
President Trump's move to levy tariffs on U.S. auto imports
initially pulled forward demand from price-sensitive buyers, but
that boost is expected to fade as higher prices take hold.
"Much of the pull-ahead demand that fired up sales in April
and May has now been satiated, so consumer demand is expected to
be weaker in the coming months," said Charlie Chesbrough, senior
economist at Cox Automotive.
Cox also expects Tesla to report a near 21% drop in
second-quarter vehicle sales from last year.
The tariffs will majorly hit lower-cost imported models,
such as Ford's compact Maverick pickup truck and GM's affordable
Chevrolet Trax crossover, denting affordability concerns as the
average new-vehicle price nears $50,000.