U.S. Auto Industry Roars Back to Life with 16 Million Vehicle Sales in 2024
The U.S. auto industry has ended 2024 on a strong note, with nearly 16 million vehicles sold, marking a 2% increase from the previous year and the highest sales figures since 2019. This remarkable recovery is a testament to the industry’s resilience in the face of rising costs and inflation challenges.
General Motors Leads the Pack
General Motors (GM) has maintained its position as a market leader, selling over 2.7 million vehicles in 2024, a solid 4.3% increase from 2023. This marks GM’s best year since 2019, when it sold 2.9 million vehicles. The company’s electric vehicle (EV) portfolio has been a significant contributor to its growth, with sales jumping 50% to over 114,400 units.
Ford and Toyota Follow Close Behind
Ford has also had a strong showing, with 2.08 million vehicles sold, up from just under two million the year before. The company’s electrified vehicles, including hybrids and EVs, have been the star of the show, with sales surging 38.3% to 285,291 units. Toyota has also reported a solid year, with sales rising 3.7% to over 2.3 million vehicles compared to 2.25 million in the previous year.
Honda, Hyundai, and Kia Break Records
Honda has seen an impressive 8.8% increase in sales to 1.4 million units, while Hyundai and Kia have broken records, with Hyundai sales up 4% to 836,802 and Kia climbing 1.8% to 796,488 units. Both brands have leaned on their mix of compact and fuel-efficient vehicles to maintain momentum.
Stellantis Hits a Rough Patch
On the other hand, Stellantis, which owns brands like Dodge and Jeep, has seen sales drop 15% to around 1.3 million vehicles, its weakest performance since 2010. Dodge was hardest hit, with a 29% sales decline, while Jeep was down 9%. Industry experts attribute this decline to Stellantis’ pricing strategy, which has led to a product mismatch for the market.
Discounts Drive Sales, but Affordability Remains a Challenge
Discounts have played a significant role in driving sales across the board, with buyers in December getting an average of $3,400 off, up 25% from 2023. However, affordability remains a challenge, with the average transaction price (ATP) for a new vehicle in the United States standing at $48,397 in September 2024, reflecting a 0.4% decline from last year.
Industry Looks Ahead to 2025
Despite the challenges, the industry is optimistic about the future, with S&P Global Mobility projecting 2025 sales to hit 16.2 million vehicles. As the industry continues to push toward electrification, it will be interesting to see how the major players adapt and innovate to meet the changing demands of the market.
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