On the Dash:
- New light-vehicle sales fell 7.1% in April, the eighth straight year-over-year decline.
- Hybrid sales jumped 9.2% year-over-year, the only powertrain segment to post gains.
- BEV sales collapsed 35.5% year-to-date as market share fell to 5.1%.
Tariffs, high interest rates, and rising gas prices are squeezing dealers from multiple directions, and the April numbers show it. New-vehicle sales posted their eighth consecutive year-over-year decline, EV demand continues to fall, and affordability remains an obstacle for buyers, according to NADA’s April 2026 Market Beat report.
New light-vehicle sales in April 2026 reached a seasonally adjusted annual rate (SAAR) of 15.9 million units, down 7.1% from April 2025. The comparison is steep in part because April 2025 was the final month before tariffs on imported autos and auto parts took effect, driving significant pull-ahead buying that inflated last year’s numbers. Year-to-date through April, the SAAR stood at 15.6 million units, down 6.7% year over year.
Conventional hybrids were the only powertrain segment to post year-over-year gains. Hybrid sales are up 9.2% through the first four months of 2026 and now represent 14.5% of all new vehicles sold, an increase of 2.1 percentage points from the same period last year.
Battery electric vehicle sales continued to slide. BEV sales are down 35.5% year-to-date through April, with market share falling to 5.1%, a drop of 2.3 percentage points compared to the same period in 2025. BEV sales have fallen sharply every month since the federal tax credit expired in September 2025.
Affordability remains a ceiling on demand. J.D. Power estimates the average monthly new-vehicle payment at $812 in April, up 3.1% year over year. The average interest rate on a new-vehicle finance contract is 6.7%, a figure that has held between 6% and 7% for the past year despite Federal Reserve rate cuts.
Gas prices are adding another layer of pressure. The war in Iran and closure of the Strait of Hormuz continue to disrupt oil and gas production, pushing average pump prices well above $4 per gallon across most of the country. According to Omdia, OEMs have indicated it would take sustained prices above $5 per gallon to drive significant industry-wide shifts in vehicle mix.
