Driven by inventory replenishment and higher incentive measures, new car sales in the USA in 2024 may reach a five-year high.

On January 3rd, according to predictions from Analysts quoted by Bloomberg, new car sales in the USA are expected to exceed 15.8 million units in 2024, reaching the highest level since 2019. Charlie Chesbrough, a senior economist at Cox Automotive, also stated:

"In 2024, the new car market experienced a turbulent year but is expected to finish strongly."

Analysts expect General Motors to successfully defend its title, achieving the highest sales for two consecutive years, with this year's sales approaching 2.7 million vehicles. General Motors Chief Financial Officer Paul Jacobson stated that this is due to the support of "very" resilient Consumers.

However, not all major Auto Manufacturers received good news. Jeep manufacturer Stellantis and electric vehicle giant Tesla did not achieve annual sales growth.

Stellantis's third-quarter report shows that 2024 is particularly challenging for the company, with sales of its originally "popular" Ram, Jeep, and Dodge brands all declining. Analysts believe this is a consequence of the company's aggressive pricing strategy and also led to the sudden departure of its former CEO.

For Tesla, the company's sales growth has slowed due to an aging product line and intensified competition from foreign markets. According to a previous Wall Street article, Tesla's announced vehicle delivery data for the entire year and the fourth quarter of 2024 shows that the company produced approximately 1.773 million pure electric vehicles and delivered about 1.79 million cars in 2024, lower than the 1.8 million vehicles delivered in 2023, and also below Analysts' expectations, marking the first decline in annual sales in over a decade.

However, Cox still expects the USA's electric vehicle sales to approach 1.3 million units, accounting for about 8% of all new car purchases, a slight increase compared to 7.6% in 2023.

Analysts believe that in the fourth quarter, more Consumers may choose electric vehicles to take advantage of the electric vehicle tax credit, especially after Trump's administration, which may fulfill its promise to revoke the electric vehicle incentive policy and increase import tariffs. In that scenario, Automobile sales in 2025 and beyond will also be affected.

Analysts indicate that this holiday shopping enthusiasm may carry over into the new year. J.D. Power data and analytics division president Thomas King stated:

"As the positive trend of 2024 continues into 2025, the overall improvement in inventory and increase in the supply of affordable vehicles are expected to sustain sales momentum."