By Nora Eckert
DETROIT (Reuters) – New-car sales in the United States are on the rise in 2024, rebounding from the lows experienced during the pandemic. Analysts estimate that this growth is being fueled by replenished inventories and increased incentives.
It is projected that sales will surpass 15.8 million vehicles this year, marking the highest level since 2019. General Motors is expected to maintain its position as the top-selling automaker for the second consecutive year.
Charlie Chesbrough, senior economist at Cox Automotive, commented, “It’s been a volatile year for the new-vehicle market, but it is expected to finish on a high note.”
The robust sales figures have been buoyed by a resilient consumer base, as noted by GM Chief Financial Officer Paul Jacobson. Cox analysts estimate that General Motors is nearing 2.7 million in sales for the year.
Automakers are set to release their final sales figures on Friday, providing a comprehensive overview of the industry’s performance.
While many major automakers enjoyed a successful year, Stellantis, the maker of Jeep, and electric car pioneer Tesla experienced challenges in achieving year-over-year sales growth.
Stellantis faced a tumultuous year in 2024, with reports indicating decreases in sales for its popular Ram, Jeep, and Dodge brands. The company grappled with the repercussions of an aggressive pricing strategy, leading to the sudden departure of former CEO Carlos Tavares.
Tesla, known for its electric vehicles, encountered slowing sales attributed to market saturation and heightened competition in key markets like China. The company, led by Elon Musk, is navigating these challenges as it looks to rejuvenate its product lineup.
Notably, electric vehicle sales in the U.S. are projected to approach 1.3 million units in 2024, constituting around 8% of all new vehicle purchases. This slight increase in consumer interest in electric vehicles from the previous year is a positive sign for the industry’s evolution.
As the year draws to a close, consumers have shown interest in electric vehicles, possibly driven by the availability of EV tax credits. However, the future of these incentives remains uncertain, especially under the incoming administration of President-elect Donald Trump, who may alter existing policies on electric vehicles.
The automotive market also experienced an uptick in discounts towards the end of the year, providing shoppers with more incentives to make purchases. J.D. Power reported a 30.7% increase in average incentive spend per vehicle from December 2023 to December 2024, with the amount reaching $3,442 per vehicle.
Looking ahead to 2025, analysts anticipate continued growth in new-vehicle sales, with a projected increase of about 3%. Factors such as improved inventory levels and the availability of more affordable vehicles are expected to sustain the positive momentum witnessed in 2024.
“In 2025, as the trends of the past year persist, we anticipate sustained sales momentum driven by overall
