Booming Hybrid Sales Drive U.S. Auto Market Surge

U.S. new-car sales rose in 2024, driven by hybrid demand and improved inventories, reaching their highest level since 2019. Automakers anticipate strong sales into 2025, despite potential policy changes from President-elect Trump. Hybrid vehicles saw significant growth, while EV sales were slower, and companies like Toyota and Ford adapted strategies.

In 2024, U.S. new-car sales climbed to their highest point since 2019, as automakers noted rising demand for hybrid vehicles and replenished inventories. Sales reached 15.9 million, a 2.2% increase from 2023, according to data from Wards Intelligence. Automakers are optimistic about continued growth into 2025, although policies proposed by President-elect Donald Trump present uncertainties, notably the possible removal of tax credits for EVs.

Automakers like Toyota and Ford reported strong hybrid vehicle sales. Toyota saw a 3.7% increase in U.S. sales, buoyed by the popularity of smaller vehicles and hybrids, with executive David Christ noting that hybrid models are selling out. Ford also experienced rising hybrid sales, attributing a 4.2% increase in 2024 vehicle sales in part to doubling hybrid sales compared to EVs.

While hybrid sales thrive, the outlook for EVs remains mixed. Ford remains committed to boosting EV sales with incentives, as U.S. EV sales inched up in 2024, making up 8% of total new car purchases. However, some companies like Stellantis and Tesla recorded declining sales, facing challenges from strategies and stale lineups, respectively, as they battle intensified competition from China.

(With inputs from agencies.)