U.S. New Car Sales Rose to Five-Year High in 2024

According to Reuters, U.S. new-car sales in 2024 were on the rise, recovering from pandemic lows thanks to improved inventories, increased incentives, and a growing demand for hybrid vehicles.

Wards Intelligence reported earlier this month that new vehicle sales reached 15.9 million last year, marking a 2.2% increase from the previous year and the highest figure since 2019. Automakers anticipate that this upward trend will persist into 2025.

Most automakers recorded solid sales results last year, as they adjusted to slowing demand for EVs and relied on their core business of gasoline-powered trucks and SUVs, while some capitalized on soaring consumer interest in hybrid vehicles.

Sales of traditional hybrids increased 36.7% in 2024 compared with the previous year, Wards reported. Toyota notched a 3.7% sales gain year-over-year in the U.S., boosted by steady increases of reliable smaller vehicles such as the Camry and RAV4 SUV, as well as significant gains for hybrid vehicles. Reuters reported last year that the automaker is potentially converting all of its lineup into hybrid-only models.

Ford Motor also benefited from an increase in hybrid sales, which helped the automaker's total vehicle sales rise 4.2% in 2024, selling roughly double the number of hybrids compared with its EVs, with 187,426 hybrids sold and 97,865 EVs.

Automakers have axed or changed lofty EV plans laid out when demand seemed much stronger than it turned out to be, but they are still aiming to attract new EV buyers.

Ford said that in an effort to support EV sales, which were up 34.8% for the automaker in 2024, it would extend a program where EV buyers receive free chargers and installation at home through the end of March.

U.S. sales of electric vehicles are expected to approach 1.3 million, or about 8% of all new vehicles purchased, Cox Automotive said. Buyers' willingness to go electric crept up slightly from 2023, when U.S. drivers bought 1.2 million EVs, comprising 7.6% of all sales.

Jeep maker Stellantis, and electric vehicle giant Tesla  were the outliers last year, recording slipping sales compared with 2023. Stellantis had a particularly rocky 2024, selling 15% fewer vehicles in the U.S. compared with 2023, and recording decreases across its popular Ram, Jeep and Dodge brands, the company reported.

Tesla has faced slowing sales as its lineup grows stale and competition in China intensifies, eating in to an important market.