DETROIT — The U.S. automotive industry has been through a rollercoaster ride in the past few years, with the pandemic causing a significant dip in new car sales. However, the industry has shown remarkable resilience and has bounced back stronger than ever. In 2024, U.S. new car sales continued to rise, reaching a high of 15.9 million, the highest since 2019. This growth can be attributed to various factors such as replenished inventories, higher incentives, and a surge in demand for hybrid vehicles.
According to Wards Intelligence, new vehicle sales in 2024 saw a 2.2% increase from the previous year, showcasing the industry’s ability to adapt and thrive in challenging times. Automakers are optimistic about the future and are projecting strong sales to continue into 2025. However, there is a potential wild card in the form of President-elect Donald Trump’s proposed automotive policies, which could impact the industry’s growth.
Despite the uncertainty, automakers are confident about the future. “We’re carrying significant momentum into 2025,” said Rory Harvey, GM’s head of global markets. The Detroit-based automaker retained its position as the biggest U.S. carmaker by sales, selling 2.7 million vehicles in 2024, a 4.3% increase from the previous year.
Most automakers recorded solid sales results in 2024, as they adjusted to the changing market demands. With the slowing demand for electric vehicles (EVs), automakers focused on their core business of gasoline-powered trucks and SUVs. However, there was also a significant increase in sales of hybrid vehicles, indicating a shift in consumer preferences.
Wards reported a 36.7% increase in sales of traditional hybrids in 2024 compared to the previous year. This surge in demand for hybrid vehicles can be attributed to their fuel efficiency and lower emissions, making them an attractive option for environmentally conscious consumers.
Toyota, one of the leading automakers in the world, saw a 3.7% increase in sales in the U.S. market in 2024. The company’s success can be attributed to its reliable smaller vehicles such as the Camry and RAV4 SUV, as well as its significant gains in hybrid vehicle sales. In fact, Reuters reported last year that Toyota is considering converting its entire lineup into hybrid-only models, showcasing its commitment to sustainable mobility.
David Christ, head of sales and marketing for Toyota in North America, stated, “For hybrids, we’re sold out – customers want them. We can’t get enough of them.” He also mentioned that battery electric vehicles, despite the incentives and government support, are not in as high demand as hybrids.
Ford Motor also saw a 4.2% increase in total vehicle sales in 2024, thanks to the rise in hybrid sales. The company’s total hybrid sales were double that of its EVs, with 187,426 hybrids sold and 97,865 EVs. This further highlights the growing popularity of hybrid vehicles among consumers.
Automakers have had to adjust their plans for EVs, as the demand for them was not as strong as initially anticipated. However, they are still committed to attracting new EV buyers. Ford announced that it would extend its program, where EV buyers receive free chargers and installation at home, until the end of March to support EV sales.
According to Cox Automotive, U.S. sales of electric vehicles are expected to reach 1.3 million in 2025, making up about 8% of all new vehicle purchases. This is a slight increase from 2023 when 1.2 million EVs were sold, accounting for 7.6% of all sales. This shows that buyers’ willingness to go electric is gradually increasing.
However, the proposed automotive policies by the Trump administration could have a significant impact on auto sales in the coming years. If President-elect Trump follows through with his plans to roll back President Joe Biden’s EV policies, including the $7,500 consumer tax credit on some EVs and increasing tariffs on imports from Mexico and Canada, it could change the dynamics of the market.
David Christ from Toyota stated, “If you take true demand for the car and eliminate the $7,500 benefit, it’s really going to change who wants them and how they buy them. So we’re preparing for that.” Despite the potential challenges, automakers are determined
