Record High for New Car Sales in the U.S. in 2024

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The automotive industry in the United States is experiencing a remarkable resurgence as figures for new vehicle sales in 2024 demonstrate a significant recovery from the historic lows attributed to the COVID-19 pandemic and disruptions in supply chains over the past four yearsThis rebound is being primarily driven by the escalating demand for electric and hybrid vehicles, highlighting a pivotal shift in consumer preferences and the industry’s focus on sustainability.

General Motors and Ford, two of the country’s most well-known automakers, have recently reported the best yearly sales results since 2019. These developments not only reflect the companies’ resilience but also align with broader market expectationsData from market research firms predict that total sales for American car manufacturers will approach 16 million vehicles in 2024, making it one of the best years for the industry since a peak of about 17 million sales in 2019.

Stephanie Brinley, the Vice President of S&P Global Mobility, remarked on this positive trajectory, indicating that as sales continued to increase into the fourth quarter, a total sales figure nearing 16 million vehicles is quite a possibility for the current year

Despite facing challenges from inflation and affordability issues, the industry seems to be moving in a favorable directionThis optimism is reflective of consumer trends that are increasingly favoring electric options as they gain more market presence and acceptance.

Looking ahead, forecasts for 2025 suggest a continuation of this growth trend, though it may still fall short of the numbers achieved in 2019. S&P Global Mobility, alongside Edmunds, has estimated approximately 16.2 million vehicles will be sold this year, hinting at a gradually strengthening market that is adapting to new norms.

Among these giants, General Motors maintains its status as the top-selling automaker in the US, with Ford following closely behindGeneral Motors disclosed that its fourth-quarter sales saw a remarkable increase of 21% compared to the previous year, culminating in a total of 2.7 million sales for 2024—a 4% hike over the previous year

Noting a particular highlight, the sales of full-size pickup trucks led the charge, achieving their highest level since 2007.

The growth in General Motors' sales is attributed to robust performances across all four of its American brands along with a substantial increase of nearly 50% in electric vehicle sales, pushing the total number of EVs sold to over 114,000. While this boost is impressive, it’s important to note that electric vehicles still comprise a mere 4.2% of the company's overall sales portfolioNonetheless, it’s estimated that by the end of the last quarter, General Motors held about 12% of the US electric vehicle market, signifying a notable presence.

On the heels of General Motors' positive report came Ford, revealing similar trends in their sales increase for both the fourth quarter and the entire yearThe company reported a significant rise in the sales of electric and hybrid vehicles, branding them as part of its “electrified” lineup

Ford's overall vehicle sales in the United States for the last quarter of 2024 surged by 8.8% to reach 530,000, with electric vehicle sales accounting for 77,300 of thoseRetail sales also climbed, boasting a 17% increase in the same periodFor the entire year, Ford tapped into total sales of 2.08 million units, a marked improvement from its sub-2 million performance in 2023, although still less than the 2.42 million units reported in 2019.

In terms of electric vehicle performance, Ford revealed that sales of traditional internal combustion engine vehicles increased by a slight 0.2% year-over-year, while electric vehicle sales notably jumped by 38.3%. Combined, both hybrid and electric vehicles constituted approximately 13.7% of Ford’s total annual sales, showcasing the brand’s evolving focus on electrification.

Other automakers such as Toyota, Hyundai, and Honda also reported modest year-over-year sales increases that met industry expectations

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Toyota, ranking third in sales, boasted a growth of 3.7% for 2024 despite a decline in sales during DecemberThe company managed to sell over 2.3 million vehicles last year, a strong rebound considering market conditionsIn a more optimistic light, Honda announced an impressive 8.8% surge in sales, amounting to 1.4 million vehicles, supported by a 9.9% increase in sales during the last month of the year.

Hyundai’s sales rose by about 4%, achieving a record total of 837,000 unitsIts sibling brand, Kia, announced an equal success story with record sales of 796,000 vehicles in the U.S., a 1.8% increase from the precedent year’s figures, thus reflecting a broader market resilience.

However, it wasn’t all smooth sailing within the automotive sector in 2024. Stellantis, the parent company of Dodge, Ram, and Jeep, reported disappointing figures showing a staggering 15% decline in U.S

sales, resulting in an overall sales figure of around 1.3 million vehiclesThis dismal performance marks the company’s worst figures since 2010. In particular, the Dodge brand suffered the most tremendously, with an astonishing 29% drop in sales as consumer enthusiasm waned significantlyThe challenges extended to other models as well, with Ram Trucks and Alfa Romeo both facing sales downturns of 19%, leading to a squeezed market shareEven the typically reliable Jeep brand saw a 9% dip in sales, underscoring the stark contrast in experiences across the industry.

This year has proven to be a pivotal period for the American automotive market, illustrating a dynamic landscape marked by increasing electric vehicle adoption, shifting consumer preferences, and a surge in overall sales as companies adapt to the evolving environmentAs the industry continues to recover and innovate, consumers can expect a more diversified array of options and an enhanced focus on sustainability in the years to come.

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