U.S. Market: New Vehicle Sales Recover, BEV Expansion Slows

Review of electrification and investment plans, supply chain restructuring

2025/02/21

Summary
U.S. sales up 2.1% y/y in 2024; pace of electric vehicle expansion slows
GM maintains top position among OEM groups
OEMs announce revisions to electrification and investment plans
Actively exploring new partnership strategies
EV supply chain is being built and restructured
New Trump Administration signals major policy shift on tariffs and energy policies
GlobalData Production Forecast: Light vehicle production in the US will be 10.8 million

Summary

U.S. sales share of electric vehicles

U.S. auto sales in 2024 were up 2.1% year-over-year (y/y) to 16.46 million units, indicating a solid recovery in demand.

Looking at the performance by manufacturer group, General Motors and Toyota continued to hold the first and second place market shares (16.4% and 14.2%, respectively) from the previous year.

The growth of electric vehicles (EVs), which had grown rapidly over the past two to three years, has slowed, and the combined sales share of zero-emission vehicles (battery EVs(BEVs)/plug-in hybrids(PHEVs)/fuel cell vehicles(FCEVs)) was 9.5%, up just 0.3points from the previous year.

As the recognition that the widespread adoption of EVs will take longer than expected, many OEMs, while stating that there is no change in the direction of their electrification strategies, are reviewing their plans to introduce battery EVs and are increasingly trying to meet market needs and environmental regulations by strengthening their lineups of hybrid vehicles(HEVs) and PHEVs, which are more convenient and economical. Additionally, there have been movements towards new partnerships to address the burden of EV development costs as well as the intensifying competition with Chinese manufacturers.

On the other hand, against the backdrop of geopolitical risks and the movement away from China, the U.S. government under the Biden administration had provided active financial support for efforts to build an EV supply chain within the United States.

Although the specific measures of the new Trump administration, which are expected to have a major impact on the U.S. auto industry, are not yet clear, this report provides an overview of the U.S. auto market for the full year 2024 and discusses topics that are considered important for the future outlook, with a focus on electrification trends. In addition, GlobalData's North American production forecast is also provided.

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U.S. Market: New Vehicle Sales Recover, BEV Expansion Slows

Review of electrification and investment plans, supply chain restructuring

2025/02/21

Summary

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