US car market shows signs of fatigue as costs weigh on buyers
Financial Times••business
Key Points:
- New car sales in the US are expected to decline in 2026 for the first time in four years, with forecasts predicting a drop from 16.3 million units in 2025 to between 15.8 and 16 million units, driven by affordability challenges and weakening demand for electric vehicles.
- Rising costs due to tariffs and the removal of a $7,500 EV tax credit have made it difficult for automakers to shield consumers from price increases, leading to concerns about further price hikes in 2026.
- The market is experiencing a "K-shaped" dynamic where higher-income buyers continue purchasing larger, premium vehicles, while lower-income consumers are being priced out of the new car market, often turning to used cars or
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