Kelley Blue Book: March Sees Surge in New-Vehicle Prices, Truck/SUV Demand Rises

Filmogaz.com reviewed new data from Kelley Blue Book: March Sees Surge in New-Vehicle Prices, Truck/SUV Demand Rises. The average new-vehicle transaction price in March reached $49,275. That marked a 3.5% increase from March 2025.

Industry prices, mix and sales pace

The annual price gains accelerated for a fourth consecutive month. The rise reflects stronger sales of full-size pickups and SUVs. Compact and subcompact models continued to lose market share.

Transaction prices were mostly flat versus February, dipping 0.1%. Manufacturer’s suggested retail price averaged $51,456. That MSRP was up 3.9% year over year.

Incentive spending rose to 7.2% of ATP in March. That level was slightly above the 7.1% recorded a year earlier. Incentives increased from 6.9% in February and 6.5% in January.

Sales volume fell year over year, but March deliveries rose nearly 18% from February. Automakers used higher incentives to speed the sales pace and reduce inventory.

Segment trends

Most high-volume segments posted ATP gains below the industry average. The top five segments by volume held steady month to month. The top two segments kept nearly identical shares at 17.4% and 17.3% respectively.

• Midsize SUV: $49,853, up 2.8% year over year.
• Compact SUV: $37,055, up 2.1% year over year.
• Full-size pickup truck: $65,964, up 2.8% year over year.
• Subcompact SUV: $30,612, up 2.2% year over year.
• Compact car: $27,469, up 1.1% year over year.

Electric vehicles and Tesla

Battery-electric vehicle ATP fell to $54,508 in March. That was 2.8% lower than one year earlier. This marked the third consecutive monthly decline for EV transaction prices.

Average incentives for EVs rose to 14.6% of ATP, roughly $8,000. EV incentives were more than double the industry average. The price gap between EVs and ICE+ models narrowed to about $5,800.

Tesla’s average transaction price was $53,421 in March. That was down 2.6% from a year earlier and 1.2% from February. Tesla incentives increased to 12.3% of ATP.

Cox Automotive estimates show Tesla unit sales fell 8.4% year over year in March. However, Tesla deliveries rose 6.1% versus February, marking a second straight monthly increase.

Analyst perspective

Erin Keating, executive analyst at Cox Automotive, noted consumers remain focused on larger vehicles. She said higher fuel costs did not reverse demand for bigger models. Keating added that the near-$50,000 ATP reflects the market’s tilt toward pricier segments.