The U.S. auto industry ended 2024 on a high note, with sales approaching 16 million vehicles. That's up 2% from the previous year and the best figure since sales peaked at 17 million units in 2019.
S&P Global Liquidity said the recovery is showing real momentum despite rising costs and inflation challenges. "Given affordability and inflation headwinds, this could be a good year," said Stephanie Brinley, deputy director of global liquidity at S&P. "It's moving in the direction we need it to be."
General Motors (GM) continues to maintain its leadership position, with sales exceeding 2.7 million vehicles in 2024. That's a 4.3% increase from 2023 and GM's best year since 2019, when it sold 2.9 million vehicles.
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Electric vehicles (EVs) were a bright spot, with sales jumping 50% to more than 114,400 units. Still, electric vehicles account for only 4.2% of GM's total sales. "GM's electric vehicle portfolio is growing faster than the market because we offer all-electric vehicles for nearly everyone, no matter what they like to drive," said Rory Harvey, GM's president of global markets.
Following closely behind was Ford, which had a strong sales performance with 2.08 million vehicles sold, up from less than 2 million last year. While Ford hasn't quite hit its 2019 peak of 2.42 million vehicles, its electric vehicles, such as hybrids and EVs, are the stars of the show.
Sales in this segment jumped 38.3% to 285,291 vehicles, accounting for 13.7% of Ford's total sales. In July 2024, then-Ford Blue president Andrew Frick noted that "hybrid and electric vehicles are driving growth," emphasizing the company's focus on electrification options.
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According to Reuters, Toyota Motor also performed well this year, with sales increasing 3.7% to more than 2.3 million vehicles, compared with 2.25 million vehicles the previous year. Honda's sales growth was even more significant, with sales rising 8.8% to 1.4 million vehicles.
Hyundai and Kia broke records, with Hyundai sales up 4% to 836,802 vehicles and Kia sales up 1.8% to 796,488 vehicles. Both brands rely on a mix of compact and fuel-efficient vehicles to maintain momentum.
Stellantis, on the other hand, is having a hard time. Sales at the automaker, which owns the Dodge and Jeep brands, fell 15% to about 1.3 million vehicles, its weakest performance since 2010.
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Dodge was hit hardest, with sales down 29%, while Jeep was down 9%. In a CNN report, Jessica Caldwell, Edmunds' director of industry insights, commented on Stellantis' pricing strategy, saying, "They just can't afford it," referring to Stellantis' The typical consumer is unable to follow the brand toward higher prices.
She further explained, "That's where they're hitting a brick wall. Fundamentally, there's a product-market mismatch."
Discounts helped drive sales across the board. According to the Wall Street Journal, buyers received an average discount of $3,400 in December, a 25% increase from 2023.
But affordability remains a challenge. Kelley Blue Book pointed out that the average transaction price (ATP) of new cars in the United States in September 2024 was US$48,397, a decrease of 0.4% from last year.
Looking to the future, the industry is optimistic. S&P Global Mobility expects sales to reach 16.2 million vehicles in 2025.
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This article originally appeared on Benzinga.com General Motors, Ford and Toyota push electrification, U.S. auto industry sales rebound to 16 million vehicles in 2024
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