Hybrid Vehicles Drive U.S. Auto Market Up From Pandemic Low

U.S. new-car sales surged in 2024, nearing 16 million vehicles. Driven by a desire for hybrids, sales rebounded with replenished inventories and increased consumer incentives. While automakers thrived, plans for EVs are challenged by potential policy changes under President-elect Trump, impacting consumer demand and overall auto market dynamics.

U.S. new-car sales in 2024 have reached a significant milestone, rebounding from pandemic lows as inventories recover and consumer demand rises, automakers announced. Sales are projected to close in on 16 million vehicles, marking the highest level since 2019. General Motors maintained its top position in the market, projecting continued momentum into 2025. However, policy proposals from President-elect Donald Trump, like the potential removal of EV tax credits, may disrupt future growth.

Rory Harvey, head of global markets at GM, stated, "We're carrying significant momentum into 2025." Last year, GM reported a 4.3% increase in sales, hitting 2.7 million vehicles. Automakers are adapting to slower EV demand by focusing on gasoline-powered trucks and SUVs and capitalizing on the booming interest in hybrid vehicles. Notably, Toyota recorded a 3.7% increase in U.S. sales, driven by hybrid models.

Toyota's sales chief, David Christ, commented on the robust demand for hybrids, noting, "For hybrids, we're sold out." Meanwhile, Ford benefited from this hybrid surge, leading to a 4.2% sales increase. Despite some automakers adjusting EV strategies, Ford remains committed to supporting EV growth, reflecting a 34.8% jump in EV sales by extending free charger programs. Potential policy shifts under the incoming administration could, however, redefine the landscape for EV incentives and tariffs.

(With inputs from agencies.)