GM’s Electric Vehicle Sales Surge As American Automakers Finish 2024 On a Positive Note

What Happened?

On January 3, 2025 General Motors (GM) reported that electric vehicle sales had increased 50% for 2024 and 125% in the last quarter of that year.

The increase in sales has more than doubled GM’s share of the electric vehicle market. The company is now second only to Tesla (TSLA) in EV sales in the United States.

Motor Trend pointed out that because General Motors doesn’t currently offer plug in EVs in the United States, the sales figures for 2024 were comprised of 100% battery powered vehicles. GM reported that sales for the Equinox EV were responsible for the majority of the increases for 2024.

As Jamie Lareau of the Detroit Free Press reported:

‘Overall General Motors reported Friday that its U.S. sales rose 4% for all of 2024 compared with the year before, marking its best year-over-year gain since 2019. The automaker reported it sold more than 2.7 million new vehicles in the states, compared with 2.6 million new vehicles in 2023. For the fourth quarter, GM reported a 21% gain in sales. The results mean GM once again tops the second highest-selling automaker in the U.S., Toyota Motor North America.’

Why it Matters

GM’s sales figures represent a strong finish in 2024 for the U.S. auto industry.

Neil Boudette of the New York Times explained:

‘Cox Automotive, a market researcher, said it expected auto sales to grow 2.8 percent this year, to 16.3 million cars and trucks. Jonathan Smoke, Cox’s chief economist, said consumer sentiment, wages and other economic factors were adding to demand. Wages are growing, vehicle incentives have risen, loan approve rates are up, he said. As we enter 2025, momentum is back on our side.’

The strong finish in EV sales may also have been impacted by the results of the U.S. presidential election. President-Elect Trump has said he plans to end a $7,500 tax credit for the purchase of EVs, so consumers may be rushing to buy EVs before Mr. Trump returns to the White House. 

Overall the increased sale of EVs and strong performance by automakers is good news for the U.S auto industry and bodes well for the entire American economy in 2025. 

How it Affects You

According to Nora Eckert of Reuters

‘U.S. new car sales in 2024 continued to rise from their pandemic lows, bolstered by replenished inventories, higher incentives and surging demand for hybrid vehicles. Sales of new vehicles finished at 15.9 million last year, according to Wards Intelligence, up 2.2% from the prior year, and the highest since 2019.’

Sales of hybrids remains strong as well.

As David Christ, head of marketing for Toyota said ‘for hybrids, we’re sold out—customers want them, and we can’t get enough of them.’