The Q3 Shift in the US Auto Market: General Motors' Sales Title at Risk
High oil prices and the reduction of subsidies have led to a structural differentiation in the US auto market. Despite a decline in sales in Q3, General Motors still holds the top position, while Toyota is closing in with its hybrid models.
General Motors maintained its top position but the advantage narrowed.
In the third quarter, General Motors sold approximately 671,000 vehicles in the United States, a year-on-year decrease of 5.5%, but still held the position of the sales champion. Toyota sold approximately 633,000 vehicles during the same period, a year-on-year increase of 0.6%, and the gap between the two narrowed to around 38,000 units. Looking at the full year, General Motors led Toyota by approximately 136,000 units, but the trend of Toyota catching up was clearly favoring Toyota. If this trend continues, Toyota is expected to regain the top sales position in the United States within this year or next year.
Hybrid power becomes a market dividing line.
In September, the average price of gasoline in the US reached $4.43 per gallon, an increase of approximately 38% compared to the same period last year. The high oil prices have directly changed consumers' car-buying preferences, with fuel efficiency becoming the primary consideration. The sales of Toyota's electric vehicles increased by 28.5% in the third quarter, accounting for 57.4% of the total sales. Honda's hybrid models also reached a new high. Meanwhile, General Motors currently only offers one hybrid model.
The market share of the "Big Three" automakers in Detroit has dropped to an all-time low.
Cox Automotive predicts that the market share of the three American automakers - General Motors, Ford, and Saturn - will fall to approximately 36%, marking the lowest level in history. Asian brands, leveraging the advantages of hybrid models, are expected to account for more than half of new vehicle sales. Saturn's third-quarter sales were approximately 324,000 units, remaining largely the same as the previous year. Ford is facing dual pressures of production capacity and product issues, and its sales continue to be under pressure.
Hyundai Motor Group's sales in the United States in the third quarter will reach approximately 511,000 units, surpassing Ford's 504,000 units. If the forecast is accurate, this will be the first time in Hyundai's history that it outsells Ford in the US market. Hyundai's brand portfolio includes Hyundai, Kia, and Genesis, with a wide range of product lines and sufficient reserves of hybrid models. Ford, however, is affected by a supplier fire accident, and the production and sales of the F-Series pickup trucks have been continuously restricted.
Sales of electric vehicles have experienced a sharp decline.
General Motors saw a 62% year-on-year drop in electric vehicle sales in the third quarter. The Chevrolet Equinox EV saw a decline of over 92%, while the Blazer EV saw a 84% drop. The root cause was that the $7,500 federal tax credit policy expired at the end of September 2025. Before the policy expired, consumers rushed to purchase vehicles, depleting a large amount of demand in advance. GM attempted to continue the subsidy by purchasing inventory vehicles from its internal finance department, but ultimately withdrew the plan.
The burden of car purchase has increased.
In August, the average transaction price of new cars in the United States rose by 1.9% year-on-year, reaching approximately $50,000. Although loan interest rates have dropped, the monthly payment amounts are still increasing. The average monthly payment for new cars in the second quarter reached $777, and more than one fifth of the car loans had monthly payments of $1,000 or more. Nearly a quarter of car buyers chose the 84-month extended loan term. Consumers are trading longer repayment periods for manageable monthly payments.
The economy-oriented Trax crossover vehicle launched by General Motors performed well, with sales increasing by 16.3% in the third quarter. The company sold 700,000 vehicles with an initial price of less than $30,000 last year, and the affordable product portfolio has become an important support to cushion the impact. After years of restructuring, General Motors has exited the markets of Europe, Vietnam and Australia, and its cash flow situation has improved.
Honda's leasing strategy proves effective.
Honda's sales in the third quarter increased by 9% year-on-year, making it one of the most outstanding brands among major automakers. The company has consistently offered leasing services, while most other automakers have abandoned this strategy. Leasing has brought a stable rhythm of customer re-engagement. In an environment where car purchase costs remain high, leasing has lowered the entry threshold for consumers, helping Honda maintain sales growth.