New vehicle stock levels in the United States rose 2.8% in June 2025 to 2.8 million units, according to S&P Global Mobility
Meanwhile, even if they remain 0.5% below the levels recorded in June 2024 this is still not good news for the industry. While modest, this uptick reflects a broader market recalibration amid weakening consumer demand, impending tariff changes, and evolving OEM strategies.
The industry continues to navigate a period of uncertainty, particularly with a 30% tariff on vehicle imports from Mexico set to take effect in two days. “The automotive market is in a state of uncertainty influenced by macroeconomic factors such as tariff expectations and shifting consumer preferences,” S&P Global Mobility noted.
The average age of current inventory dropped to 75 days in June, continuing a downward trend since December. Inventory levels had declined significantly in April due to advance purchases ahead of the expected tariffs but have since rebounded. However, this recovery has been uneven across brands.
Volkswagen led month-over-month (MoM) inventory growth with a 13.8% increase, followed by Kia (11%), Buick (10.7%), and Lexus (9.6%). In contrast, Lincoln saw an 8.5% decline, Mercedes-Benz dropped 3.5%, and Hyundai fell 2.6%.
Discounting also increased slightly. The average discount per vehicle reached US$3,407 in June, up US$42 from May. Electric vehicles (EVs) saw steeper reductions, with average discounts rising to US$5,424. EV prices dropped for the third consecutive month, with the average MSRP down 1.5% MoM to US$61,831.
Despite lower prices, EV inventory continued to grow. S&P Global Mobility reported a 3.6% MoM and 5.1% year-over-year increase, totalling 188,000 units. The average EV now remains on dealer lots for 84 days. Slower turnover was attributed to softening demand, though sales are expected to rebound as buyers seek to capitalise on tax credits set to expire on September 30.
Notable trends include rising inventory for the Ford Mustang Mach-E, now exceeding 19,000 units, and the Hyundai Ioniq 5, which reached its highest level in two years. Meanwhile, inventories for the Chevrolet Blazer EV and BMW i4 are declining.
Luxury brand inventory held steady at 424,000 units in June, while non-luxury brand inventory rose 3.4% to 2.4 million units. Stock level imbalances persist, with OEMs such as Ford, Jeep, and Dodge holding over 90 days of supply, compared to less than 60 days for Toyota, Lexus, and Honda.
Roughly one-third of current inventory which is about 948,000 units is classified as “pre-tariff,” meaning it was imported before March 2025 and will not be affected by the new duties.
These units may provide short-term pricing stability. S&P Global Mobility noted that manufacturers strategically increased pre-tariff inventory to cushion the impact of rising costs, stating: “Low inventory levels observed in April, attributed to pre-tariff sales, appear to have been replenished.”
