Is Polaris Inc. (PII) Among the Best Car Stocks To Buy In 2025?
We recently compiled a list of the 13 Best Car Stocks To Buy In 2025. In this article, we are going to take a look at where Polaris Inc. (NYSE:PII) stands against the other car stocks.
Car stocks are the stock holdings of businesses engaged in the automotive market, such as those that produce automobiles, auto parts, or industry-related services.
According to Reuters, U.S. new car sales in 2024 grew significantly from their pandemic lows due to increased production, restocked inventory, and growing demand for hybrid cars. As per Wards Intelligence, new car sales in the United States hit 15.9 million in 2024, up 2.2% from 2023 and the highest since 2019.
In 2025, S&P Global forecasts that global sales of new light vehicles, or passenger cars and trucks, are projected to rise 1.7% to 89.6 million units. The overall reduction of 2025 automotive estimates reflects anticipated changes in US policy following the election. There will be significant impacts on the demand for vehicles as a result, particularly on interest rates, trade flows, sourcing, and the rates of BEV adoption.
Colin Couchman, executive director of global light vehicle forecasting for S&P Global Mobility, commented:
'2025 is shaping up to be ultra-challenging for the auto industry, as key regional demand factors limit demand potential and the new US administration adds fresh uncertainty from day one,' 'A key concern is how 'natural' EV demand fares as governments rethink policy support, especially incentives and subsidies, industrial policy, tariffs, and fast evolving OEM target setting.'
Chris Hopson, principal analyst at S&P Global Mobility, recently stated that consumers who are considering buying a new car are hurrying to dealers before possible price implications become apparent. The sales spikes in March and April might open the way for future volatility. In the next three months, automakers will face new, tariffed inventory and production levels in addition to unstable economic conditions.
In response to industry criticism, President Trump recently introduced a two-year relief provision linked to domestic sales and manufacturing volume, which loosened the recently imposed 25% tariffs on cars and parts. Now, automakers with U.S. factories can deduct import taxes on parts, starting at 3.75% of the suggested retail price of a car in the first year, and then 2.5% in the second year. Vehicles with 85% U.S., Canadian, or Mexican parts are exempt from tariffs, which will rise to 90% by next year. Furthermore, the administration exempted these companies from overlapping taxes on Canadian and Mexican commodities, steel, and aluminum. After industry groups warned that the duties, which went into effect in March for automobiles and on May 3 for parts, would increase auto prices, lower sales, and negatively impact service costs, the move was made.
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