The Wall Street Journal (WSJ) reported on September 25, 2025, that the automotive industry is sending warning signals to the U.S. economy due to rising vehicle prices and sluggish sales amid President Donald Trump's "tariff war." The Trump administration's imposition of 25% tariffs not only on imported cars but also on parts is putting pressure on the profits of U.S. automakers, WSJ pointed out.

Nationwide new car sales are holding relatively steady this month thanks to consumers rushing to buy electric vehicles (EVs) before the maximum $7,500 EV tax credit expires at the end of the month. However, WSJ diagnosed that this EV performance is masking the overall weakness in the automotive market. September EV sales are projected to rise 28% year-over-year, while gasoline and hybrid vehicle sales are expected to decline by 2.5%, according to research firm J.D. Power's forecast released that day.

Consumers flocking to EVs are cannibalizing sales of gasoline and hybrid vehicles. According to a recent analysis by automotive research outlet Kelley Blue Book, August EV sales accounted for 9.9% of total vehicle sales, marking an all-time high. The auto industry, facing sluggish sales for both new and used cars, is desperately trying to attract customers through installment financing and price discounts. In particular, automakers are offering various incentives to maximize EV sales this month.

Hyundai is offering the Ioniq 9 on a 36-month lease for $419 per month. For purchases, it provides financing at an annual interest rate of 1.99% for up to 60 months. Buyers purchasing from dealer inventory receive a $5,000 discount. For the Ioniq 5, a 24-month lease is available for $179 per month, with a $7,500 discount for dealer inventory purchases. The Genesis GV60 is offered on a 33-month lease for $319 per month. Purchases come with $10,000 in bonus cash and zero-interest financing for up to 60 months. Kia is providing a 24-month lease for the EV9 at $399 per month, along with zero-interest financing for 4 years and $5,000 in bonus cash upon purchase.

For the Niro EV, a 24-month lease is available for $149 per month, with $7,500 in bonus cash for buyers. Ford is offering lower-interest installment financing this week to buyers with poor credit histories to clear unsold inventory of its bestseller, the F-150 pickup truck. Automakers are also providing cash bonuses to active-duty or veteran military personnel and college graduates, so checking manufacturer-specific programs can secure applicable discounts based on individual circumstances.

Additionally, all automakers selling EVs are offering steep discounts on electric vehicles to boost sales before the tax credit ends this month. The auto industry has been reeling from a series of recent setbacks. Major used car retailer CarMax saw sales and revenue plummet in the second quarter, while Tricolor—a subprime auto lender and car sales company owner—is under government investigation and recently filed for bankruptcy liquidation, the newspaper reported. Japanese maker Honda decided to shut down its electric Acura SUV business just one year after its launch.

Reporter: Cho, Hwan-dong