US new automobile gross sales rose to five-year excessive in 2024, helped by hybrids

By Nora Eckert

DETROIT (Reuters) -U.S. new-car gross sales in 2024 continued to rise from their pandemic lows, bolstered by replenished inventories, increased incentives and surging demand for hybrid automobiles, automakers reported on Friday.

Gross sales of latest automobiles completed at 15.9 million final yr, in keeping with Wards Intelligence, up 2.2% from the prior yr, and the very best since 2019. Automakers are projecting sturdy gross sales will proceed into 2025, though President-elect Donald Trump’s proposed automotive insurance policies, equivalent to eradicating tax credit for EVs, current a wild card.

“We’re carrying vital momentum into 2025,” Rory Harvey, GM’s head of worldwide markets, mentioned in a launch. The Detroit automaker defended its 2023 crown as the most important U.S. carmaker by gross sales, promoting 2.7 million automobiles final yr, the corporate mentioned on Friday, up 4.3% from 2023.

Most automakers recorded strong gross sales outcomes final yr, as they adjusted to slowing demand for EVs and relied on their core enterprise of gasoline-powered vans and SUVs, whereas some capitalized on hovering client curiosity in hybrid automobiles.

Gross sales of conventional hybrids elevated 36.7% in 2024 in contrast with the earlier yr, Wards reported.

‘HYBRIDS, WE’RE SOLD OUT’

Toyota (NYSE:TM) notched a 3.7% gross sales acquire year-over-year within the U.S., boosted by regular will increase of dependable smaller automobiles such because the Camry and RAV4 SUV, in addition to vital features for hybrid automobiles. Reuters reported final yr that the automaker is doubtlessly changing all of its lineup into hybrid-only fashions. 

“For hybrids, we’re offered out – prospects need them, we will’t get sufficient of them,” mentioned David Christ, head of gross sales and advertising and marketing for Toyota in North America. “Battery electrical automobiles, even with the large incentives we’re spending and the federal authorities’s incentives, are simply not as in demand.” 

Ford Motor (NYSE:F) additionally benefited from a rise in hybrid gross sales, which helped the automaker’s whole automobile gross sales rise 4.2% in 2024. The Dearborn, Michigan, firm offered roughly double the variety of hybrids in contrast with its EVs, with 187,426 hybrids offered and 97,865 EVs.

Automakers have axed or modified lofty EV plans laid out when demand appeared a lot stronger than it turned out to be, however they’re nonetheless aiming to draw new EV patrons.

Ford mentioned on Friday that in an effort to help EV gross sales, which had been up 34.8% for the automaker in 2024, it could prolong a program the place EV patrons obtain free chargers and set up at residence by way of the top of March. 

U.S. gross sales of electrical automobiles are anticipated to strategy 1.3 million, or about 8% of all new automobiles bought, Cox Automotive mentioned. Consumers’ willingness to go electrical crept up barely from 2023, when U.S. drivers purchased 1.2 million EVs, comprising 7.6% of all gross sales, Cox mentioned.

The Trump administration’s plans would seemingly have an effect on auto gross sales in 2025 and past, if the incoming president makes good on plans to roll again President Joe Biden’s EV insurance policies, together with a $7,500 client tax credit score on some EVs, in addition to improve tariffs on imports from Mexico and Canada. 

“If you happen to take true demand for the automobile and also you get rid of the $7,500 profit … it is actually going to alter who needs them and the way they purchase them. So we’re making ready for that,” Toyota’s Christ mentioned.

STELLANTIS AND TESLA LAG

Jeep maker Stellantis (NYSE:STLA) and electrical automobile large Tesla (NASDAQ:TSLA) had been the outliers final yr, recording slipping gross sales in contrast with 2023.

Stellantis had a very rocky 2024, promoting 15% fewer automobiles within the U.S. in contrast with 2023, and recording decreases throughout its well-liked Ram, Jeep and Dodge manufacturers, the corporate reported on Friday. The French-Italian automaker grappled with fallout from an aggressive pricing technique that in the end led to the abrupt departure of former CEO Carlos Tavares.

Tesla has confronted slowing gross sales as its lineup grows stale and competitors in China intensifies, consuming in to an essential marketplace for the corporate run by Elon Musk. The EV large reported a uncommon lower in yearly deliveries on Thursday.