US auto sales are on pace to rise 6.2% year-over-year in Q3, with GM, Toyota, Ford, and Hyundai leading gains, while record EV sales of 410,000 units pushed electric vehicles to nearly 10% of the market ahead of expiring tax incentives. Cox Automotive lifted its full-year forecast to 16.1 million vehicles, but the industry faces growing challenges as CarMax reports steep declines, Ford leans on risky financing, and Volkswagen and Porsche cut output. GM is also scaling back EV production with layoffs in Tennessee and Detroit. Despite recent momentum, fading incentives, rising costs, and tighter demand signal a turbulent road ahead.
Jaguar Land Rover (JLR), the UK’s biggest carmaker, was crippled by a cyberattack that has shut down production lines for three weeks and counting, per The New York Times. JLR halted production at several major factories, with up to 1,000 cars a day not being built. The company’s 33,000 employees were furloughed or sent home, per the BBC. Brands can’t afford to wait until the next breach to act. Companies should invest in cybersecurity insurance to shield themselves from devastating losses and supply-chain shocks. Equally important, they must build brand marketing strategies around recovery to protect brand equity.
Robotaxi deployments are moving from pilots to broader rollouts as companies try to cash in on advancements in autonomous driving. Lyft recently began robotaxi tests in Atlanta, and Amazon's Zoox launched in Las Vegas. For companies investing in robotaxis, the opportunity extends beyond passenger rides. These fleets could eventually serve as a backbone for cost-saving delivery services, expanding the commercial applications of the technology. With Uber and DoorDash testing delivery robots, robotaxis could be the next move in on-demand logistics, moving beyond transporting passengers to carrying packages, meals, and groceries.
LG Electronics will integrate Xbox into its vehicle infotainment systems, allowing passengers to play games on the road, per Engadget. At the same event, IAA Mobility 2025, LG announced plans to incorporate Zoom, integrating a user experience that will allow drivers to participate in meetings without added distraction. LG’s integrations open up new in-vehicle advertising opportunities within premium ad formats, including in-game inventory. With LG’s data, brands will be able to geotarget the gaming and productivity demographics while they’re on the move—opening opportunities for gas stations, restaurants, and brick-and-mortar stores.
The news: General Motors is tapping the brakes on electric vehicle production just after posting its best-ever month of EV sales in August. The automaker plans to scale back output of the Chevy Bolt and two Cadillac models as the federal $7,500 EV tax credit expires at the end of this month. “It will take several months for the market to normalize,” wrote Duncan Aldred, senior vice president and president, North America, in a blog post explaining the move. In the meantime, GM aims to avoid overproduction, anticipating a “smaller EV market for a while.” Our take: GM revived the Bolt to fill an unmet niche: affordable EVs. While the GOP tax and spending bill may narrow that opportunity, strong consumer interest suggests GM can still carve out meaningful gains—if it delivers a compelling value-for-money proposition.
The gap between retail’s most and least digitized categories will grow even wider.
The news: Tesla’s Q2 earnings disappointed as fallout continues from Elon Musk’s political spotlight, highlighting the risks of a brand being tied to its leader’s actions. Revenues reached $22.49 billion and deliveries hit 384.1 million, down 12% and 13% YoY, respectively. Between January and June, EU car sales declined 44% YoY, per the European Automobile Manufacturers’ Association. Our take: While complicated to execute, brand equity should be as independent as possible to avoid tying company identity to a single leader. When CEOs make mistakes, companies can rebuild trust through honesty and accountability and by highlighting assets other than leaders, like employees, partnerships, or key products. Tesla seems to be on the path to recovery, but it may have a long road ahead.
Tesla is officially in the restaurant business following the much-hyped opening of the Tesla Diner in Los Angeles. The futuristic concept could be the template for additional openings in the US as well as abroad, CEO Elon Musk said—helping the company boost brand awareness, engagement, and sales. The diner’s launch—and the accompanying wave of press and social media posts—could help reset consumers’ perceptions of the Tesla brand at a particularly tumultuous time for the company. But it could also, given the company’s increasingly polarized reputation, become a focal point for protests, which might deter would-be customers from stopping in.
Automakers face an increasingly difficult environment as President Donald Trump’s tariffs and the removal of EV tax credits reshape supply chains and production strategy. Like the broader US economy, auto sales have been resilient thus far, as tariffs and other government policies motivate consumers to buy now. Automakers and dealers are capitalizing on the moment with incentives like employee pricing, but the short-term surge is unlikely to last.
The insights: Electric vehicle owners are ideal targets for out-of-home (OOH) advertising and foot traffic. Chargers bring in foot traffic to surrounding areas. Half (50%) of EV drivers go grocery shopping while waiting for their vehicles to charge, per a JOLT Audience Insights survey in Australia. Our take: Here’s how retailers, brands, and advertisers can get ahead in this space: Install charging stations outside brick-and-mortar locations to capitalize on both foot traffic and OOH ads. Add QR codes to EV charger advertising that provide discounts to nearby or online businesses. Offer store credits or gift cards that cover the cost of charging fees to boost loyalty and word-of-mouth referrals.
The news: The electric vehicle industry hit a rough patch in Q2, with sales slowing across the board—especially for companies focused solely on EVs. Our take: If the so-called Big Beautiful Bill passes—as many expect—and eliminates the EV tax credit, the industry could find itself in a downturn it can’t easily steer out of. Without incentives to offset higher upfront costs, EV adoption may slow even further, leaving automakers stuck with inventory and uncertain demand.
The insight: The vast majority—80%—of automakers’ $30 billion tariff costs next year will be passed along to the consumer, according to a report by AlixPartners. The consulting firm expects car prices to rise by $1,760 on average—which will slash US auto sales by 1 million over the next three years. Our take: Cars are an essential expense for a majority of Americans. But as the cost of ownership (including insurance, maintenance, and gas) rises, more consumers will be forced to cut spending in other areas. Those pressures could be particularly acute for households that rushed to buy vehicles before tariffs kicked in and are now struggling with higher monthly payments they hadn’t fully planned for.
The news: Auto parts maker Marelli filed for Chapter 11 bankruptcy, making it one of the first high-profile casualties of the Trump administration’s tariffs. Our take: Not all of Marelli’s problems can be blamed on tariffs. But tariffs and uncertainty have a way of magnifying the cracks in a company’s business—cracks that will become harder to paper over the longer the Trump administration sticks to its hardline tariff policies.
The news: Tesla stock rebounded about 5% Friday after a 14.3% crash during a public social media feud between President Donald Trump and Tesla CEO Elon Musk over the “Big Beautiful Bill.” The EV giant lost $152.4 billion in market value Thursday—its biggest one-day decline ever, per The Wall Street Journal. Our take: The Musk-Trump quarrel could drag on or it could end as abruptly as it started. Its effects on Tesla’s stock are a reminder that Musk is the company’s de facto spokesperson and that his persona is inseparable from Tesla’s brand. The Big Beautiful Bill, paired with cautious US consumer spending and economic uncertainty, could slow Tesla’s EV adoption just when the company can least afford it.
The news: In-car voice commerce has the potential to unlock a $35 billion annual opportunity for automakers, according to new research by in-car voice technology provider SoundHound AI. The hands-free tech integrates voice ordering, payments, and navigation directly into vehicles—transforming them into mobile commerce hubs that users are already familiar with. Key takeaway: Marketers and advertisers should prepare for a shift in automotive user interface by integrating voice-first campaigns into connected car ecosystems. Opportunities include forging partnerships with automakers and service providers for branded voice experiences, sponsored suggestions, and frictionless ordering while prioritizing transparency to satisfy safety regulators.
The auto industry joins shift to performance-driven channels: Marketers are pulling away from traditional media like TV as tariff pressures mount.
The average vehicle age keeps climbing in the US: Advance Auto Parts is banking on maintenance and repair to help it steer clear of macroeconomic speed bumps.
Meta pays creators for traffic, Spotify wins in-app freedom post-Epic ruling, and Amazon’s Zoox expands robotaxi testing despite software recalls.
Drivers overwhelmingly prefer voice assistants over drive-thrus, presenting a ripe opportunity for restaurants to cash in on convenience and curbside cravings.
US-UK trade deal eases barriers across key sectors: Our FAQ explains how the pact may benefit exporters and affect economic growth.