The automotive industry has faced considerable headwinds in 2025, as we continue to monitor the impact of tariffs, the end of federal EV incentives and global economic factors. During this time, our team of J.D. Power experts has remained focused on delivering the timely data and insights our clients rely on to navigate change and power confident decisions.
As we look back on this year, here’s a quick recap of 2025 automotive industry highlights:
New Vehicle Quality
2025 MODEL YEAR LAUNCHES ARE PROBLEMATIC
Most new launches in 2025 were notably more problematic, exhibiting a higher number of quality issues compared with the previous five years.
Source: 2025 U.S. Initial Quality Study
COMPLICATED TECHNOLOGY DERAILS OWNER SATISFACTION
When looking at owners of 2025 model year vehicles compared to owners of carryover models, the largest satisfaction gaps are in vehicle setup and startup (via the app), as well as infotainment systems, a notable 2025 automotive industry highlight.
Source: 2025 U.S. Automotive Performance, Execution and Layout Study
RECOGNITION TECHNOLOGIES = NEXT BIG CHALLENGE
New recognition and authentication technologies, like Biometric Authentication, Touchless / Hidden Controls and Direct Driver Monitoring are proving to be problematic for new-vehicle owners, and J.D. Power predicts they will become the prominent quality issue with future vehicles. Automakers should carefully balance the integration of these advanced technologies with their impact on the overall customer experience.
Source: 2025 U.S. Tech Experience Index Study
Used Vehicles
PRICES ARE UP
As of November 2025, average used-vehicle retail prices are $29,696, up $725 from a year ago. This reflects the combination of reduced supply of recent model-year used vehicles due to lower new-vehicle production during the pandemic, fewer lease maturities and manufacturers moderating discounts.
Source: November 2025 Automotive Forecast
Retail
THE IMPACT OF TARIFFS
36% of new-vehicle buyers say tariffs impacted their purchase process, especially buyers of Japanese and European vehicles. How so? Among buyers who say tariffs impacted their purchase, 87% report purchasing their vehicle sooner than intended. And in the rush, nearly 15% of buyers say they spent more than originally planned.
Source: 2025 U.S. Sales Satisfaction Index Study
NOT FIXED RIGHT THE FIRST TIME
A surprising and problematic 2025 automotive industry highlight is that 12% of new-vehicle repairs were found to be not completed correctly on the first visit. Among the customers with this problem, only 50% say they returned or planned to return to the dealership, while 5% resolved the issue by visiting an aftermarket service facility.
Source: 2025 U.S. Customer Service Index Study
Electric Vehicles
EV SALES DOWN, BUT NOT OUT
Consumer response to the repeal of the $7,500 EV tax credit has been swift and dramatic. For the month of October 2025, the first full month following the expiration of the federal incentive program, EV sales plummeted by 53% and now represent just 6.0% of total monthly new vehicle sales. However, J.D. Power data suggests that a significant number of current EV owners will be back in the market for a new car within the next year, and 94% of them indicate plans to buy another EV.
Source: November 2025 E-Vision Intelligence Report
STRONG EARLY PERFORMANCE: OEM FAST CHARGING NETWORKS
Tesla’s Supercharger network continues to lead the DC fast charger segment in customer satisfaction. However, a positive standout within the 2025 automotive industry highlights is the early performance of non-Tesla automaker-operated networks. Customer experiences with the Mercedes-Benz Charging Network, Rivian Adventure Network and Ford Charge suggest that automakers are poised for success here.
Source: 2025 U.S. Electric Vehicle Experience Public Charging Study
PHEVS MORE PROBLEMATIC, FOR THE FIRST TIME
Customers reported more problems with PHEVS, on average, than with BEVs. However, gas-powered vehicles and hybrid vehicles were still less problematic options.
Source: 2025 U.S. Initial Quality Study
Websites & Apps
OEM WEBSITES NOT MEETING CUSTOMER NEEDS
Approximately one-third of digital experiences on vehicle manufacturer websites fail to meet basic user needs for speed and design. When these foundational elements are not met, overall satisfaction falls significantly compared with websites that fully deliver on them. A key area to consider for improvements? Animations and auto-playing videos may be causing the perception of slower speeds.
Source: 2025 U.S. Manufacturer Website Evaluation Study
APP USAGE RISES, ENGAGEMENT REMAINS LIMITED
Nearly 80% of ICE vehicle owners reported using their vehicle’s app in 2025, an increase of 2 percentage points from 2024. However, only 27% of these owners identify as a frequent user (using the app, every time or more than half the time they drive).
Source: 2025 U.S. OEM ICE App Report
What will happen in 2026? As the year unfolds, J.D. Power will keep a firm pulse on the market. We look forward to continuing to deliver incisive industry intelligence to our clients.