U.S. Auto Sales Rise in 2024: What's in Store for 2025?

Core Insights - The U.S. auto industry demonstrated strong resilience in 2024, rebounding from a decade-low in 2022, driven by replenished inventories, rising hybrid demand, and strategic promotional incentives [1] Sales Performance - New car sales in the U.S. reached 15.9 million units in 2024, reflecting a 2.2% year-over-year growth, supported by robust holiday sales and a strong fourth quarter [2] - General Motors (GM) remained the top-selling automaker with 2.7 million vehicles sold, a 4.3% increase from the previous year, with all key brands showing solid gains [3] - Toyota, the second-best seller, reported a 3.7% increase in sales to 2.3 million vehicles, driven by popular models and hybrid sales [4] - Ford secured third place with 2.08 million vehicles sold, marking an increase from just under 2 million in 2023 [4] - Hyundai-Kia sold a combined 1.65 million units, with Hyundai achieving a record 836,800 vehicles sold [5] - Honda's sales increased by 8.8% to 1.42 million vehicles, with December sales rising 9.9% [5] - Stellantis faced challenges with a 15% drop in U.S. sales to 1.3 million units [6] Hybrid and EV Trends - Hybrid vehicle sales surged by 36.7% in the U.S., while EV sales reached a record 1.3 million units in 2024 [7] - Toyota's hybrid and EV sales exceeded 1 million units, up 53% year-over-year, accounting for 43% of its total U.S. sales [8] - Ford's hybrid sales rose 26.5%, significantly outpacing EV sales growth of 16.3% [9] - Overall, Ford's total EV sales, including hybrids, increased by 38% year-over-year to a record 285,291 units [9] - Hybrids are preferred over pure EVs, reflecting consumer demand for better fuel efficiency and fewer limitations [10] Market Outlook - The U.S. auto market is projected to grow further in 2025, with new car sales expected to reach 16.3 million units, a 3% increase from 2024 [12] - Electrified vehicles are anticipated to gain traction, with pure EVs projected to capture 10% of total sales, crossing 1.5 million units for the first time [13] - Profitability pressures will persist as automakers balance production costs with competitive pricing [14]