Automakers closed 2024 with strong sales in the United States in the last three months of the year, helped by increased demand for electric models.
Gains were led by General Motors. On Friday, it said its fourth-quarter sales rose 21 percent. to more than 755,000 cars and light trucks from a year ago. Sales of its electric vehicles more than doubled to nearly 44,000 in the quarter, making GM the second-largest EV seller behind Tesla.
Ford Motor sold more than 530,000 vehicles. In the quarter, a gain of about 9 percent. Ford’s EV sales rose 16 percent to 30,000 vehicles.
Honda Motor reported a 9 percent increase in the fourth quarter, while Hyundai and Nissan said their sales rose 10 percent.
Not every company came forward. Toyota’s quarterly sales fell 3 percent, while Stellenbosch, the maker of Jeep, Chrysler and Ram vehicles, reported a 7 percent drop.
Cox Automotive, a market researcher, said it expects auto sales to rise 2.8 percent to 16.3 million cars and trucks this year. Cox Chief Economist Jonathan Smoak said consumer sentiment, wages and other economic factors are boosting demand.
“Wages are going up, car incentives are up, loan approval rates are going up,” he said. “As we enter 2025, the momentum is back on our side.”
For most of 2024, sales of electric models rose modestly as consumers worried about their prices — EVs are slightly more expensive than gas-powered vehicles — and the challenges of charging on the go.
But in the fourth quarter, sales of EVs rose about 12 percent, Cox said, to 356,000 vehicles, helped by lower interest rates and softer incentives and discount plans. Tesla, for example, is offering a three-year lease on its Model Y hatchback for $199 per month. Kia is promoting a two-year lease on its EV6 for as little as $159 per month. Ford is offering free home charging stations and installation to customers who buy or lease one of its electric models.
Analysts say the year-end jump in EV sales may have been spurred in part by President-elect Donald J. Trump, who has proposed a $7,500 federal tax on electric vehicles priced under $80,000. Will eliminate the tax credit. The tax credit has helped manufacturers offer attractive lease deals.
“Incentives on EVs have been really good, but there may also be some awareness among consumers that the tax credit could end, and that may have helped drive people into the market,” said Jessica Caldwell, head of insights at Edmonds. ” said Jessica Caldwell, head of insights at Edmonds, another auto industry researcher. “If we get to the point where it’s definitely going away, there could be more of a rush to buy.”
For the full year, the industry sold just 16 million cars and trucks, up about 2 percent from 2023, according to Cox. GM was the largest producer, selling 2.7 million vehicles, followed by Toyota with sales of 2.3 million. cars and trucks, and Ford with 2.1 million.
Tesla doesn’t break out its sales by region, but Cox estimates the automaker’s U.S. sales are down 6 percent in 2024. on Thursday, Tesla, the EV leader, announced a slight decrease. Worldwide sales in 2024, its first annual decline in the face of increased competition, though its fourth-quarter sales set a company record.
Automakers are expected to sell 1.3 million EVs domestically in 2024 — 8 percent of all new vehicle purchases — up from 1.2 million in 2023, Cox said.