Automakers wrapped up 2024 with impressive sales growth in the United States, driven by a late-year surge in demand for electric vehicles (EVs). The fourth quarter proved pivotal, with industry leaders like General Motors (G.M.) and Ford Motor riding the wave of consumer interest in electrification.
Winners of the Quarter
General Motors led the charge, reporting a 21% jump in fourth-quarter sales compared to the previous year, totaling over 755,000 vehicles. Its EV segment showed particular strength, doubling sales to nearly 44,000 units, securing G.M.’s position as the second-largest EV seller in the U.S., behind Tesla.
Ford followed closely with a 9% overall increase in quarterly sales, exceeding 530,000 vehicles. Its EV sales rose by 16%, reaching more than 30,000 units. Meanwhile, Honda, Hyundai, and Nissan each posted gains of approximately 9–10% during the same period. However, not all automakers saw growth. Toyota’s quarterly sales dipped 3%, while Stellantis — the parent company of Jeep, Chrysler, and Ram — experienced a 7% decline.
Despite mixed individual performances, the industry overall benefited from favorable economic conditions. Cox Automotive, a market research firm, projected a 2.8% increase in total auto sales for 2024, reaching 16.3 million vehicles. Cox’s chief economist, Jonathan Smoke, noted the factors fueling demand: “Wages are growing, vehicle incentives have risen, [and] loan approval rates are up. Momentum is back on our side as we enter 2025.”
Electric Vehicles Drive Growth
The fourth quarter marked a turning point for EV adoption, with sales jumping 12% to 356,000 units. Lower interest rates and aggressive incentives contributed to the spike. Tesla, for instance, offered a three-year lease on its Model Y for just $199 per month, while Kia promoted a two-year lease on its EV6 for as little as $159 per month. Ford further sweetened its deals by providing free home charging stations with select EV purchases.
Analysts also suggested that political factors played a role. President-elect Donald J. Trump’s stated intention to eliminate the $7,500 federal tax credit on EVs under $80,000 may have spurred buyers to act before potential policy changes. “The awareness that the tax credit might disappear could have nudged consumers into the market,” said Jessica Caldwell, head of insights at Edmunds.
For 2024 as a whole, automakers sold 1.3 million EVs in the U.S., accounting for 8% of new vehicle purchases — a modest rise from 1.2 million in 2023. Tesla remained the dominant player, capturing nearly half of the domestic EV market, despite a 6% decline in its U.S. sales. With EVs gaining traction and automakers embracing innovation, 2024 closed on a promising note, setting the stage for an electrified future in the auto industry.