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Kelley Blue Book Report: Trends in New-Vehicle Pricing and EV Sales

In August, the automotive market experienced a notable increase in new-vehicle prices, a trend significantly influenced by the arrival of more 2026 model-year vehicles at dealerships. According to the Kelley Blue Book, this month marked the fastest price growth observed in more than two years, as automakers prioritized offsetting rising production costs and adjusting to changing consumer preferences. The average transaction price (ATP) for new vehicles reached approximately $49,077, reflecting a 0.5% increase compared to July and a 2.6% escalation year-over-year. Simultaneously, the manufacturer's suggested retail prices (MSRP) averaged $51,099, showcasing a year-over-year increase of 3.3%. This rise is especially meaningful as it aligns closely with long-term averages, which implies that consumers should prepare for adjustments in their budget plans.

Despite the higher prices, the market saw retail sales improve by 2.5% relative to the same period last year. Automakers managed to maintain favorable price levels, with only five of the 31 major brands tracked reporting lower transaction prices. Notably, Acura and Tesla recorded the most significant declines in their sales prices. In contrast, the majority of brands experienced substantial price hikes, with 17 of them recording increases exceeding 3%. Among the top-selling vehicles in the U.S., a notable number of full-sized pickups equipped with either electric or hybrid powertrains contributed to this increasing price trend. In fact, the Ford F-Series and Chevrolet Silverado held the top two positions in popularity, indicating shifting consumer preferences toward versatile and fuel-efficient vehicle options.

Erin Keating, Executive Analyst at Cox Automotive, commented on the dynamics of the automotive market, explaining that although prices are on the rise, the changes have been reasonably measured. The adjustments reflect a gradual alignment with the current production reality without creating volatility in the market environment. This calculation suggests a consideration of operational margins and consumer purchasing behaviors, hinting at an intricate balance that automakers must maintain.

Electric Vehicle Sales Surge

An impressive milestone was reached in the electric vehicle (EV) segment, with sales hitting a record of 146,332 units in August, representing a market share of 9.9%. This marked an increase from 9.1% in July and positions Q3 2025 to potentially break previous sales records, particularly with the impending expiration of government-backed EV tax credits. The average ATP of electric vehicles also experienced a rise, reaching $57,245—a 3% increase from July, signaling heightened demand within the EV market.

Interestingly, Tesla, despite being the dominant EV manufacturer in the U.S., experienced a notable decline in its market share. The company saw its ATP climb to $54,468; however, this reflected a 5.5% drop compared to the previous year, alongside a decrease in sales volume by 6.7% year-over-year. Analysts highlight the changing landscape as a surge of fresh products from competitors floods the market, providing consumers ample choices as the EV sector evolves rapidly.

Conclusion

With both conventional and electric vehicle markets witnessing shifts due to various factors, including consumer preferences and economic realities, stakeholders in the automotive industry must stay alert to evolving trends, ensuring adaptability in their strategies. As the market continues to reshape, ongoing assessments from authoritative industry sources like Kelley Blue Book will be pivotal for future decision-making processes. As automakers navigate changing landscapes, the evidence of these trends will provide insights for consumers, manufacturers, and dealers alike.