ATLANTA– In the largest gain in more than two years, new-vehicle prices moved higher in August as more model year 2026 vehicles hit dealer lots and automakers looked for ways to offset higher costs, while EV sales hit a record during the month, according to new estimates from Kelley Blue Book.
Kelley Blue Book reported that price increases accelerated in August as both key measures – average transaction price (ATP) and manufacturer’s suggested retail price (MSRP) – increased month over month and year over year. Despite higher prices, retail sales in August climbed by 2.5% versus year-ago levels.
Overall Findings
According to Kelley Blue Book:
• The new-vehicle ATP was $49,077 in August, up 0.5% from July ($48,841) and higher year over year by 2.6%. The annual gain of 2.6% in August was the largest in more than two years, although it remains below long-term averages.
• The average new-vehicle MSRP in August was $51,099, an increase compared to July and higher year over year by 3.3%, a rate very close to long-term averages and the largest gain in 2025.
• Incentives spending softened, falling to 7.2% of ATP in August from 7.3% in July. Compared to a year ago, new-vehicle incentive spending is mostly unchanged. Over the past year, incentive spending has held relatively steady, averaging 7.2% of ATP, with the highest incentive spending in late 2024 and the lowest in April 2025.
What Brands Are Doing
According to Kelley Blue Book, a vast majority of automakers posted price increases year over year in August.
Its data show:
• Of 31 major brands tracked by Kelley Blue Book, only five recorded transaction prices in August lower than year-ago levels.
• Acura (down 6.5%) and Tesla (down 5.5%) led the way, with three Stellantis brands all lower by less than 1%: Dodge, Ram and Chrysler. All other major brands saw prices increase. Seventeen brands saw price gains above 3%.
• Full-size pickups, now commonly available with EV and hybrid powertrains, continue to push the industry’s ATP higher. Of the 10 best-selling vehicles in the U.S., four are full-size pickups, with the Ford F-Series ($66,934) and Chevrolet Silverado ($61,023) firmly in the top two spots. The GMC Sierra ($70,150) is No. 7, while the Ram pickup ($65,849) is No. 9. (The Kelley Blue Book ATP is an average of all vehicles sold each month, so big sellers influence the number more than low-volume vehicles.)
EV Sales Hit Record, Tesla Loses Share
Meanwhile, Cox Automotive said its estimates indicate sales of electric vehicles reached a record 146,332 in August.
According to Cox Automotive:
• EV share during August was a record 9.9% of total sales, higher than July’s 9.1%. With government-supported EV tax credits set to expire at the end of September, current sales trends suggest Q3 2025 will set an all-time record for EV sales in the U.S. (The current record is Q4 2024: 365,824), Cox said.
• The initial estimate of the EV ATP in August was $57,245, up 3.1% from the revised lower July EV ATP of $55,562. Year over year, EV prices were mostly unchanged, down 0.1%. The higher sales volume of EVs helped push the overall industry ATP higher.
• EV incentives in August were down from the July record, but at 16% of ATP, incentives remain more than twice as high as the overall market. The average EV incentive package was more than $9,000 in August. A year ago, incentives averaged 13.6% of ATP.
• Tesla, the leading EV seller in the U.S., saw ATPs climb 2.9% in August to $54,468. Compared to a year ago, ATPs were lower by 5.5%. Tesla’s sales last month fell 6.7% year over year, and its share of all EV sales in the U.S. dropped to 38%, the lowest point in the modern EV era.
‘Not Getting Easier’
“The one constant in the automotive business is that fresh product sells well,” Stephanie Valdez Streaty, senior analyst at Cox Automotive, said in a statement. “While Tesla’s Model Y update has slowed the company’s sales decline, it’s not getting easier for the EV pioneer because the market is now flooded with all-new, fresh EVs from mainstream competitors. Consumers have more choice than ever. The current surge in EV sales is being driven by product innovation, motivated dealers, and an urgency ahead of the IRA tax credit phase-out.”
