U.S. new-car sales in 2024 showed a continued recovery from the pandemic’s impact, with sales reaching 15.9 million vehicles, a 2.2% increase from the previous year and the highest since 2019. Automakers are optimistic about sustaining this momentum into 2025, though potential changes in policy under President-elect Donald Trump, including removing tax credits for electric vehicles (EVs), present uncertainties. Despite these challenges, most automakers saw positive results, driven by replenished inventories, higher incentives, and strong demand for hybrid vehicles.
General Motors (GM) led the U.S. market, retaining its position as the top carmaker with 2.7 million vehicles sold, marking a 4.3% increase from 2023. The company, along with other automakers, benefited from a shift in consumer interest toward gasoline-powered trucks and SUVs, alongside the rising popularity of hybrid vehicles. Hybrids saw significant growth, with sales rising by 36.7% compared to the previous year. This trend reflects consumers’ growing preference for fuel-efficient alternatives as gasoline prices remained volatile.
Toyota experienced a 3.7% sales gain in the U.S., driven by strong sales of smaller, reliable models like the Camry and RAV4, as well as a surge in hybrid demand. The company reported that its hybrid models were in high demand, with some models selling out, and even suggested the possibility of converting its entire lineup to hybrid-only vehicles. This success in hybrids contrasts with weaker demand for battery electric vehicles (EVs), despite ongoing incentives from both the company and the government. Ford also benefited from hybrid sales, which contributed to a 4.2% increase in overall sales, with hybrid vehicles outperforming EVs in volume.
While hybrids gained popularity, electric vehicle sales in the U.S. increased modestly, reaching around 1.3 million units, or 8% of all new car sales. Ford continued to support EV buyers with incentives, including free home charger installation, to boost demand. However, the electric vehicle market remains smaller than expected, and some automakers have scaled back their ambitious EV plans. The future of EV sales may be influenced by the incoming administration’s potential changes to policies that currently support EV adoption, including the $7,500 consumer tax credit.
Stellantis and Tesla, however, faced challenges in 2024. Stellantis, the maker of Jeep and Ram, reported a significant 15% drop in U.S. sales, particularly struggling with its aggressive pricing strategy and leadership changes. Tesla, the dominant player in the EV market, also saw a rare decrease in deliveries due to intensifying competition in both the U.S. and China, and the aging of its vehicle lineup. While these companies faced difficulties, overall U.S. car sales continued to recover, buoyed by strong hybrid demand and various incentives from automakers.