Goldman Sachs Issues a Somber Forecast for US Automobile Sales | Carscoops

      In addition to reducing their sales forecast, Goldman Sachs anticipates that the prices of new cars may rise by $2,000 to $4,000.

      Tariffs are likely to negatively affect automotive sales and production.

      Goldman Sachs has revised their U.S. sales projection down by 850,000 units for 2025.

      Next year's performance may be even worse, with sales potentially dropping below 2025 levels.

      The automotive tariffs introduced by the Trump administration could severely impact both sales and prices. While much of the attention has been on price increases, we are starting to understand the extent of the potential sales decline.

      As reported by Reuters, Goldman Sachs has adjusted its annual U.S. automotive sales forecast from 16.25 million units to 15.40 million, representing a decrease of 850,000 vehicles. The company anticipates an even tougher market in 2026, lowering its forecast by 1.1 million units to 15.25 million, which is below their expectations for this year.

      Additionally, Trump’s 25% tariff on automotive imports is well-known, yet it is not the sole factor that may hinder sales. Steel and aluminum tariffs remain in effect, and tariffs on specific automotive parts may be introduced this May.

      Consequently, prices for new vehicles are expected to increase, whether they are produced domestically or imported. The extent of this increase is still uncertain, but Goldman Sachs believes that automakers will struggle to pass on all additional costs to consumers, particularly as demand weakens.

      Despite the prevailing uncertainty, the financial institution forecasts that new car prices will rise by $2,000 to $4,000 over the next six months to a year. This is a significant increase but still lower than some of the more dire predictions.

      Aside from U.S. sales, the company has also decreased its global automotive production forecast from 90.4 million units to 88.7 million units. Their estimate for 2026 has also been reduced from 92.6 million to 90.7 million.