The U.S. auto industry wrapped up 2024 with plenty of surprises, marking a 2.5% sales growth compared to the previous year. While that may seem modest, it translates to nearly 375,000 additional vehicles sold. The real story, however, lies in the rapid rise of electrified vehicles. From hybrids to full EVs, brands like GM, Toyota, and Honda made bold moves to secure their spots in this evolving landscape.
But the year wasn’t all wins. Several legacy automakers grappled with the declining appeal of gas-powered cars, and even luxury brands saw mixed results. As consumer preferences leaned heavily toward technology and sustainability, the race to stay relevant grew fiercer. In this article, we’ll dive into the highs, lows, and key takeaways from 2024’s automotive landscape.
A Year of Growth and Electrification
The U.S. auto industry closed 2024 on a high note, achieving a 2.5% increase in total sales compared to 2023. While this may not sound substantial at first glance, it translates to nearly 375,000 additional vehicles sold, which speaks volumes about the adaptability of the market. The surge was driven primarily by the growing popularity of electrified cars (hybrid & electric), which accounted for a significant portion of the year’s gains. GM experienced significant growth in EV sales, with a 50% increase year-over-year. This growth was particularly pronounced in Q4 when sales surged by 125% compared to the same period in 2023. Notably, GM achieved a record-breaking 114,432 EV sales throughout the year.
Toyota, long a leader in hybrid technology, sold over one million hybrid vehicles in 2024, marking a 53% year-over-year increase. Toyota’s electrified units make up more than 43 percent of total sales volume. Similarly, Honda saw its hybrid and electric offerings rise by 80%, contributing to an overall growth of nearly 9% for the brand. Ford and Hyundai also experienced notable gains in electrified vehicle sales, underscoring the broader industry shift.
However, traditional internal combustion engine (ICE) vehicles continued to hold strong in some segments. For instance, brands like Ram and Jeep faced challenges as consumer preferences shifted, but the decline in ICE sales was offset by gains in hybrid and EV categories elsewhere. Overall, 2024 demonstrated that while the market is embracing electrification, the transition remains a gradual process, with ICE vehicles still playing a critical role.
Winners and Losers Among Automakers
General Motors emerged as one of 2024’s biggest winners, recording its best sales year since 2019. GM’s overall sales increased by 4.3%, with the GMC brand setting an all-time sales record of 2.7 million units. This success was buoyed by GM’s 125% surge in electric vehicle sales, cementing its position as a leader in the EV space. Toyota also had a strong year despite inventory challenges, with a 3.7% increase in overall sales.
On the other hand, Stellantis faced a mixed year. While Chrysler and Fiat saw gains, the core Jeep and Ram brands struggled, with sales dropping 9% and 4%, respectively. Ram pickup truck sales declined significantly in 2024, falling 16% to 373,120 units. This drop, coupled with a 7% decline in fourth-quarter sales, resulted in the Ram losing its position as the third best-selling vehicle in the United States for the first time in over a decade. The Toyota RAV4 SUV has now overtaken the Ram in sales.
Stellantis’s fortunes improved in the fourth quarter, thanks to aggressive incentives and a renewed optimism following leadership changes. Meanwhile, Honda reported an impressive 11% growth, driven by an 80% increase in hybrid and electric vehicle sales. However, its luxury Acura division saw a 9% decline with only 132,367 units sold last year compared to 146,655 from last year. Despite the crisis Volkswagen is experiencing, its sales increased 15.2% year-over-year compared to 2023, reaching 379,178 units. Fourth-quarter sales improved by 7% compared to the same period in 2023
Korean automakers Hyundai and Kia continued their winning streaks, with Hyundai sales rising 4% totaling 836,802 units. This was the highest total sales year for the brand. Kia posted all-time best annual sales for the second consecutive year, selling 796,488 vehicles. Nissan also posted a 2.8% gain, but Infiniti sales slipped by 10.2%. Overall, 2024 was a year of clear winners and losers, reflecting the industry’s shifting dynamics as automakers adapt to changing consumer preferences and economic conditions.
Luxury and Niche Brands: A Mixed Bag
Luxury and niche brands presented a varied picture in 2024, with most brands enjoying positive momentum while others faced headwinds. BMW, one of the biggest players in the luxury segment, reported a modest but solid 2.5% increase, to total sales of 371,346 vehicles compared to the 362,244 vehicles sold in 2023. Mercedes-Benz had a strong year, with sales climbing 9% for passenger car sales with 88,259 units, while Lexus surged 7.9% achieving the highest US sales in the brand’s 35-year history, fueled by a strong portfolio of hybrids and redesigned models.
Genesis, Hyundai’s luxury division, continued its upward trajectory, achieving an 8% sales increase and marking its best year ever with over 75,000 units sold. The brand’s ability to combine luxury with value has resonated with buyers, solidifying its competitive position. However, not all luxury brands fared as well. Volvo Cars’ US sales dipped 3% in 2024 compared to the previous year, reaching 125,243 vehicles. However, sales of electrified models surged 20%, representing 34% of all US car sales for the brand.
Infiniti, Nissan’s luxury arm, also struggled, with sales down 10.2% with 58,070 units sold compared to 64,699 from 2023. Despite these setbacks, the overall luxury market showed resilience in 2024, driven by strong consumer demand for premium vehicles that offer advanced tech and safety features, and electrified powertrain options. The segment’s performance underscores the enduring appeal of luxury brands, even as the industry undergoes significant transformation.
Final Thoughts
The 2024 car market was anything but predictable. From GM’s electric leap to Toyota’s hybrid dominance, the industry proved it can grow even in uncertain times. Hybrids and EVs led the charge, but ICE vehicles still held their own in key segments. As we move into 2025, one thing’s for sure: the competition is only heating up.
For buyers, 2024 offered more choices than ever, whether you were after a cutting-edge EV, a reliable hybrid, or a timeless luxury ride. And for the industry? It was a year of bold moves, big wins, and the occasional stumble—a snapshot of a market that’s as dynamic as the vehicles it produces.
