Car Industry Trends and Insights

This living topic delves into the current state of the auto industry, covering key trends such as declining sales due to limited supply, the rise in electric and hybrid vehicle popularity, and the impact of vehicle design on pedestrian safety. It also highlights issues related to car theft and the measures automakers are taking to prevent it, the durability of various car models, and the challenges and opportunities posed by direct-to-consumer sales models, including car subscription services. The content provides a comprehensive overview of market dynamics, consumer behavior, and industry responses to current challenges.

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Pre-tariff buying has reduced new car inventories

Tariffs and supply constraints are leading to higher prices

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Lots of consumers purchased new cars in the second quarter of 2025, just ahead of tariffs that affect nearly all makes and models sold in the U.S. While these savvy consumers avoided paying higher prices, they significantly drew down inventories, so that there are now fewer new cars on dealers’ lots, and those cars are more expensive.

An analysis by automotive data analytics firm Cloud Theory shows the U.S. automotive industry posted a robust second quarter in 2025, buoye...

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