U.S. Auto Industry Rebounds To 16M Sales In 2024, As GM, Ford And Toyota Drive The Push Toward Electrification

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The U.S. auto industry ended 2024 on a high note, selling nearly 16 million vehicles. That's a 2% bump from the previous year and the best numbers since 2019, when sales peaked at 17 million. 

According to S&P Global Mobility, the recovery shows real momentum despite rising costs and inflation challenges. "Given the affordability and inflationary headwinds, it's probably a decent year," said Stephanie Brinley, Associate Director at S&P Global Mobility. "It's moving in the direction we need to move."

General Motors (GM) stayed on the leaderboard, moving over 2.7 million vehicles in 2024. That's a solid 4.3% increase from 2023 and GM's best year since 2019, when they sold 2.9 million. 

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Electric vehicles (EVs) were a bright spot, with sales jumping 50% to over 114,400 units. Still, EVs made up just 4.2% of GM's total sales. "GM's EV portfolio is growing faster than the market because we have an all-electric vehicle for just about everybody, no matter what they like to drive," said Rory Harvey, GM's President of Global Markets.

Not far behind, Ford had a strong showing with 2.08 million vehicles sold, up from just under two million the year before. While Ford hasn't quite hit its 2019 peak of 2.42 million, its electrified vehicles – like hybrids and EVs – were the star of the show. 

Sales in that segment surged 38.3% to 285,291 units, making up 13.7% of Ford's total sales. In July 2024, Andrew Frick, then President of Ford Blue, noted, “Hybrid and electric vehicles are driving growth,” highlighting the company's focus on electrified options. 

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According to Reuters, Toyota also had a solid year, with sales rising 3.7% to over 2.3 million vehicles compared to 2.25 million in the previous year. Honda saw an even more significant boost, with an 8.8% increase to 1.4 million units sold. 

Hyundai and Kia broke records, with Hyundai sales up 4% to 836,802 and Kia climbing 1.8% to 796,488 units. Both brands leaned on their mix of compact and fuel-efficient vehicles to keep the momentum going.

Stellantis, on the other hand, hit a rough patch. The automaker, which owns brands like Dodge and Jeep, saw sales drop 15% to around 1.3 million vehicles, its weakest performance since 2010. 

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Dodge was hardest hit, with a 29% sales decline, while Jeep was down 9%. In a CNN report, Edmunds' head of industry insights, Jessica Caldwell, commented on Stellantis’ pricing strategy, stating, “They just can't afford this,” referring to Stellantis' typical consumers’ inability to follow the brand toward higher prices. 

She further explained, “That's the wall they're hitting. Fundamentally they have a product mismatch for the market.”

Discounts helped drive sales across the board. According to the Wall Street Journal, buyers in December got an average of $3,400 off, up 25% from 2023. 

But affordability remains a challenge. Kelley Blue Book cited that the average transaction price (ATP) for a new vehicle in the United States was $48,397 in September 2024, reflecting a 0.4% decline from last year.

Looking ahead, the industry is optimistic. S&P Global Mobility projects 2025 sales to hit 16.2 million vehicles.

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