US auto sales at a seasonally adjusted annual rate of 15.8 million units represent a 2.6% drop quarter-on-quarter and a 6% decline year-on-year, reflecting elevated gas prices, inflation, tariffs and ongoing supply-chain disruptions that are driving up vehicle prices.

Rising ownership costs have prompted consumers to adjust budgets by seeking lower monthly payments, driving less and working from home more, while evaluating alternatives such as electric vehicles and hybrids to mitigate high fuel expenses.

Hybrids are gaining traction as consumers prioritize fuel efficiency; top sellers include Toyota’s Prius and RAV4, various Hyundai and Kia hybrids, and the Ford Maverick hybrid pickup, driving increased production focus on non-plug-in and mild hybrid powertrains.