Rising incentives fueled a strong year for U.S. auto sales in 2024

The steady return of automaker incentives throughout 2024 culminated in a strong December and year-end for the auto industry.

Driving the news: Incentives averaged $3,442 per vehicle in December, up 31% year-over-year, according to J.D. Power and GlobalData. 

• Discounts reached 6.6% of sticker price, reflecting a year-long rise as inventory levels continued to recover.

• Leasing deals — some starting as low as $299 per month — helped push sales (especially EVs) by providing a more affordable entry point.

Automaker winners and losers in 2024 (U.S):

General Motors: Sales reached 2.7 million vehicles (+4.3%), its best performance since 2019, with 614,117 sales from GMC alone, a record driven by Sierra, Canyon, and Denali models.

Toyota: Sales rose 3.7% to 2.33 million vehicles, including 1 million electrified models (+53%), mostly hybrids.

Ford: Sales increased 4.2% to 2.05 million vehicles, with hybrid sales hitting a record 187,426 (+40%) and EV deliveries rising 35% to 97,865.

Stellantis: Sales dropped 15% to 1.3 million vehicles, with declines at Jeep (-9%), Ram (-4%), and Chrysler (-6.8%). and Fiat saw 152.6%. gain to 1,528 units.

Honda: Sales rose 11% to 1.29 million vehicles. Acura was down 9% to 132,367 units.

Hyundai: Sales climbed 4% to 836,802 vehicles, marking its fourth consecutive year of record-breaking retail sales.

Tesla: Sales fell 6% in 2024 to around 633,000 electric vehicles, Cox analysts estimated. (Tesla only discloses global sales)

Kia: Sales rose 1.8% to 796,488 vehicles, with EV sales up 74%, making up 7% of total volume.

Nissan: Sales increased 2.8% to 952,798 vehicles, driven by smaller models like the Versa, Sentra, and Frontier, while Ariya EV sales surged 47%.

Subaru: Sales grew 5.6% to 667,725vehicles, marking the 29th consecutive month of growth.

Volkswagen: Sales rose 15% to 659,587 vehicles, with strong gains in car models like the Jetta.

Other notables: 

• BMW: Sales grew 2.5% to 371,346 vehicles.

• Porsche: Sales edged up 1% to 79,126 vehicles.

• Volvo: Sales fell 2.7% to 125,243 vehicles.

• Genesis: Sales increased 8% to 75,003 vehicles.

Zooming out: U.S. inventory levels hit 3.2 million vehicles in December, their highest in years. While SUVs and trucks are plentiful, hybrids and EVs remain in shorter supply, with leasing incentives driving their adoption.

Looking ahead: This increase in inventory will likely drive even steeper discounts in 2025, particularly for oversupplied brands such as Ram, Jeep, and Ford which may face growing pressure to clear stock through aggressive promotions.

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