Auto sales spiked in Q4 as buyers tried to lock in lower prices

The news: Auto sales ended 2024 on a high.

  • Total new cars sold rose to 15.9 million in 2024, up from 15.5 million in 2023, according to a Bloomberg analysis.
  • Both GM and Ford reported their highest US new vehicle sales since 2019. GM sold over 2.7 million autos in 2024, up 4.3% YoY, while Ford’s FY sales rose 4% to 2.08 million.

The underlying trends: Automakers were helped by a flurry of car-buying activity in Q4. Consumers were motivated by a sense of urgency to secure their vehicles before the implementation of tariffs and the likely rollback of electric vehicle (EV) tax credits.

  • Auto sales rose 2.6% MoM in November and 6.5% YoY, per the Commerce Department.
  • Total new vehicle sales in December were projected to grow by 7.3% YoY, per JD Power.
  • EV sales grew 12% YoY in Q4, an acceleration from 8% in the previous quarter—bringing full-year sales to a record 1.3 million, according to Cox Automotive.
  • GM’s EV sales grew roughly 50% in 2024, while Ford reported a 38.3% YoY increase in “electrified vehicle” sales (which include hybrids, plug-in-hybrids, and electric cars).

What’s next for the auto industry: Overall demand for new cars is expected to remain relatively healthy in 2025, thanks to improving affordability, lower interest rates, and rising consumer confidence—although tariffs on Mexican and Canadian imports could throw a wrench into those projections, given that new car prices would likely spike as a result.

But the same can’t be said for the EV market. The rate of adoption is expected to decelerate in the absence of government incentives, since affordability—along with lack of charging infrastructure—remains the biggest barrier to sales.

  • 87% of all EVs sold in 2024 received an average federal incentive of $5,600, per JD Power.
  • Without the tax credits, EV demand could fall by as much as 27%, economists told Bloomberg.
  • And interest in EVs is already cooling, perhaps in anticipation of the incoming administration’s moves: The proportion of shoppers interested in purchasing an EV for their next car fell 2% in December to 25%, per JD Power.

Go further: For more on what the Trump administration will mean for the EV industry and beyond, read our election report. Or check out our Data Drop: 5 Charts on the State of the Auto Industry.

This article is part of EMARKETER’s client-only subscription Briefings—daily newsletters authored by industry analysts who are experts in marketing, advertising, media, and tech trends. To help you finish 2024 strong, and start 2025 off on the right foot, articles like this one—delivering the latest news and insights—are completely free through January 31, 2025. If you want to learn how to get insights like these delivered to your inbox every day, and get access to our data-driven forecasts, reports, and industry benchmarks, schedule a demo with our sales team.