U.S. new-car sales are forecasted to reach a significant milestone in 2024, with projections indicating a five-year high. Analysts attribute this surge to improved inventories and increased incentives. The projection comes ahead of automakers reporting their final sales tallies throughout the day on Friday.
What Happened: According to Reuters, U.S. new-car sales in 2024 are projected to exceed 15.8 million units, marking the highest level since 2019. This increase is attributed to improved inventories and higher incentives, analysts noted on Friday.
General Motors Co. GM is expected to maintain its position as the top seller, with sales nearing 2.7 million vehicles, according to Cox Automotive analysts. The strong sales performance is supported by what GM’s CFO Paul Jacobson described as a “remarkably” resilient consumer base.
While most major automakers experienced a positive year, Stellantis N.V. STLA and Tesla Inc. TSLA did not achieve year-over-year sales growth. Stellantis faced challenges with declining sales in its Ram, Jeep, and Dodge brands, partly due to an aggressive pricing strategy that led to CEO Carlos Tavares‘ departure.
Electric vehicle sales in the U.S. are anticipated to reach 1.3 million, accounting for about 8% of total new vehicle sales. This marks a slight increase from 2023, as consumers rushed to benefit from EV tax credits before potential changes under President-elect Donald Trump‘s administration.
J.D. Power reported increased vehicle discounts, with average incentives per vehicle expected to rise 30.7% from December 2023 to December 2024. Analysts predict that these trends will continue into 2025, sustaining sales momentum.
Why It Matters: The anticipated rise in U.S. new-car sales comes amid significant changes in the automotive industry. According to S&P Global Mobility, battery electric vehicle (BEV) sales are expected to grow by 30% in 2025, capturing 17% of the global light vehicle market. In the U.S., BEVs are projected to account for 11.2% of light vehicle sales.
Additionally, President-elect Trump’s proposed tariffs on automobiles imported from Mexico could impact vehicle pricing, potentially affecting the availability of sub-$30,000 cars in the U.S.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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