Figures just announced by Reuters would suggest that the worst may be over for car manufacturers in America. There as sales for new cars, including hybrids, have continued to surge. Sales hit a high of 15.9 million units in 2024, the highest since 2019 largely helped by replenishment of inventories, better incentives and a bigger appetite for hybrids.
Sales year-on-year increased by 2.2% and automakers are forecasting continued increase in demand despite the possible threat of a Trump-led reduction in subsidies and tax credits for EVs.
General Motors, who make brands such as Chevrolet and Buick and Cadillac and others, remained the top of the pile for US manufacturers with sales of 2.7 million units, an increase of 4.3% from the previous year.
All US manufacturers reported strong sales last year but, and with the exception of Tesla, all US manufacturers reported problems with selling EVs as market sentiment has cooled on the prospect of owning one largely due to the high cost of owning one and problems with range anxiety with up to 50% of owners of EV’s regretting the decision to buy in the first place.
According to the report, growth mostly went back to basics offering petrol powered pickup-trucks and SUVs. However there was a renewed appetite for hybrid vehicles where sales increased by almost 37%.
Just down the road in Dearborn, Michigan, Ford also saw an increase in Hybrid sales which contributed to a 4.2% sales growth for the year. Last year, hybrids outsold EVs by almost two to one and the company has scaled back production of flagship models such as the F150 pickup due to lack of demand.
It wasn’t just the US of A automakers that got a boost. Toyota managed to gain a 3.7% increase fuelled mostly by their smaller range of vehicles like the Camry and Rav4 but even for them, hybrids sales were strong. David Christ, head of Sales and Marketing for Toyota North America reported that they had completely run out of Hybrids whilst even with the high incentives they cannot sell EVs as there is no demand for them.
The current demand for EVs is set to be further dented with the new Trump-led government pledging to cut the USD7500 tax credit and impose tariffs on EVs made in Mexico. Even with that the forecast for new EVs for this year, about 8% of total sales or about 1.3 million units.
