Update 1 - General Motors remains the top-selling automaker in the United States, but Toyota is close behind.

The full text has been revised based on the latest sales data released by General Motors, Stellantis, and Honda.

Nathan Gomes/Kalea Hall

Reuters, October 1 - Despite a decline in sales, General Motors (GM.N) maintained its position as the top U.S. automaker by sales in the third quarter, but Toyota Motor (7203.T) continued to erode its lead as high oil prices drove consumers toward hybrid models.

According to industry research firm Cox Automotive, General Motors, Ford Motor, and Stellantis—also known as the “Detroit Three”—are expected to see their combined market share drop to around 36% this quarter. Meanwhile, Asian brands focused on hybrids, including Toyota and Honda, are projected to account for more than half of new vehicle sales during this period.

With the situation in Iran driving oil and fuel prices higher, hybrids have become the preferred choice for consumers. Data from the American Automobile Association (AAA) showed the national average price for regular gasoline reached $4.43 per gallon in September, up from $3.20 a year ago.

Analysts expect Toyota Motor Corp, which has popular models like the Corolla Hybrid, to benefit the most from this shift.

While Toyota’s total sales rose slightly to 633,223 units, sales of the Corolla Hybrid soared nearly 36% year-on-year to 13,003 units.

Cox also projects Hyundai Motor Group's U.S. quarterly sales to surpass Ford Motor Company (F.N) for the first time, forecasting Hyundai's third-quarter sales at 511,421 units compared to Ford’s 504,172 units. Ford will release its quarterly sales data on Friday.

Car affordability remains a challenge

Research firm J.D. Power pointed out that even though borrowing costs have decreased, this has barely eased the pressure of car affordability, as higher new car prices and falling trade-in values have led to higher monthly payments. According to Cox, the average new vehicle transaction price in August was up 1.9% year-on-year to $50,089.

General Motors (GM)’s affordable models, including the Trax crossover, helped the Detroit automaker soften the blow, but overall third-quarter sales still fell 5.5% to 670,974 units.

The company’s electric vehicle sales also declined 62% compared to a year ago. Last year, demand had surged as consumers rushed to buy ahead of the $7,500 federal tax credit expiring in September 2025. Since then, industry-wide electric vehicle sales have dropped sharply.

Meanwhile, Honda’s quarterly sales rose 9% from a year ago, as the company continued to offer leasing incentives while other automakers abandoned this strategy.

Lance Woelfer, vice president of automobile sales at the automaker, said: “The lease business has brought us a steady pace of returning customers.”

Stellantis’ STLAM.MI third-quarter sales were roughly flat with last year at 324,277 units.

Cox anticipates U.S. overall sales in the third quarter to be about 4.1 million vehicles, down roughly 1% from a year ago.

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