Have you ever thought about how the rise and fall of car sales could shape your business? Whether you run an auto repair shop or are planning to grow, knowing the trends behind auto sales can offer game-changing insights into your customers and where your business might be headed next.
In this article, we’re diving into the world of auto sales. By the end, you’ll see how these numbers directly connect to the decisions you make every day in your shop.
1. Global auto sales
Global light vehicle sales hit a solid 88.2 million units in 2024, according to S&P Global Mobility—a 1.7% increase compared to last year. What fueled this steady climb? Improved supply chains and ongoing inventory restocking throughout the year.
Looking ahead to 2025, the outlook remains positive. S&P Global Mobility projects global sales to reach 89.6 million units, signaling a cautious but steady recovery. With the industry picking up speed, it’s clear that growth is just around the corner!
2. U.S. auto sales reached a five-year peak in 2024
The U.S. auto industry showcased its resilience in 2024, bouncing back stronger after a tough low point in 2022. With better-stocked inventories, growing interest in hybrids, and clever promotional offers, automakers closed the year on a high note.
New car sales reached an impressive 15.9 million units, marking a 2.2% growth from 2023, according to Wards Intelligence. This five-year high was boosted by a standout holiday season, with December sales alone jumping 6%, and a strong performance in the fourth quarter.
What drove this success? Stronger inventories, bigger discounts, and a surge in EV purchases as buyers rushed to claim tax credits before they expired, following Donald Trump’s election win. The numbers say it all—2024 was a comeback year worth celebrating!
3. A look at the 2024 sales leaders
The U.S. auto market saw a competitive year in 2024, with top automakers achieving significant milestones. Here’s how the top six brands performed:
4. Electric vehicles (EVs) break new records in 2024
The EV market in the U.S. has been buzzing with activity! With new models, better incentives, and growing infrastructure, 2024 marked another milestone year for electric vehicles. Here’s everything you need to know about the year’s EV highlights.
EVs are charging ahead like never before! Here’s a quick overview:
- Q4 2024: EV sales surged 15.2% year-over-year, hitting a record 365,824 units—the highest volume for any quarter.
- Full-Year 2024: Total EV sales reached 1.3 million, up 7.3% from 2023.
- Market Share: EVs made up 8.1% of total vehicle sales in 2024, growing from 7.8% in 2023.
- Last 48 Months: Over 2.5 million EVs have been sold!
What’s driving EV growth?
The boost in EV sales can be attributed to several factors:
- Incentives: Automakers offered strong lease deals, and both federal and state programs supported buyers.
- Exciting new models: Brands like General Motors (GM) and Honda led the charge with innovative launches, selling 80,000 more EVs than the previous year.
- Improved Options: Ford, Hyundai, and other automakers introduced updated designs, winning over customers.
List of top 10 EV models in the U.S.
- Tesla Model Y
- Tesla Model 3
- Ford Mustang Mach-E
- Hyundai Ioniq5
- Tesla Cybertruck
- Ford F-150 Lightning
- Honda Prologue
- Chevrolet Equinox
- Cadillac Lyriq
- Rivian R1S
Tesla’s evolving dominance
While Tesla remains a major player, 2024 wasn’t all smooth sailing:
- Model Y and Model 3: Accounted for over 40% of total EV sales, but both saw notable declines as they faced aging competition.
- Tesla Cybertruck: Made a splash as a newcomer, entering the Top 5 EVs in its debut year.
- Overall Performance: Tesla’s total sales dropped by 37,000 units, highlighting the hypercompetitive market.
EV trends to watch in 2025
Looking ahead, the EV market is set for more excitement:
- 15+ new EV models set to hit the market.
- Continued growth in charging infrastructure to ease range anxiety.
- Federal incentives still driving purchases (though potential policy changes loom).
- EVs will likely make up 10% of all vehicle sales in 2025.
- One out of every four vehicles sold will be electrified (hybrid, plug-in hybrid, or EV).
Why are hybrids thriving over EVs?
While EVs are gaining traction, hybrids continue to dominate in certain areas:
- Sales growth: Hybrids outpaced EVs in 2024, climbing 36.7% year-over-year.
- Why the preference?
- Hybrids offer better fuel efficiency without the need for extensive charging infrastructure.
- They’re a practical transition option for many buyers.
- Hybrids offer better fuel efficiency without the need for extensive charging infrastructure.
5. Regional Trends: Which States Sell the Most Cars?
California’s crown: #1 in new car sales
California continues to dominate the new car market in the U.S. Here’s how the numbers stack up:
- Total sales: A whopping 1,775,916 new vehicles sold in 2024.
- Why California?
- The state’s love for innovation and EVs (think Tesla and Rivian) is a driving force.
- A massive population and a thriving economy help fuel the demand for new cars.
Texas secures the #2 spot
Everything’s bigger in Texas—including their appetite for new cars!
- Total Sales: 1,522,615 vehicles hit the roads in 2024.
- Popular Choices: Texans love their trucks (hello, Ford F-150!) and SUVs, making these top sellers in the state.
Florida – Last but not least
Florida joins the elite group of states surpassing the one-million mark in new vehicle sales.
- Why Florida?
- A strong tourism-driven economy and a love for road trips make new cars essential.
- Retirees often splurge on reliable and comfortable vehicles for sunny adventures.
6. Auto sales by vehicle types: Light trucks drive the market
In September 2024, light trucks remained the top-selling vehicle type in the U.S., recording around 948,000 unit sales.
- Year-on-Year Decline: Sales of light trucks decreased by 11.2% compared to the same period in 2023, reflecting ongoing challenges in the industry.
- Comparison with Other Segments: Passenger car sales lagged far behind, emphasizing the growing preference for light trucks and SUVs among American consumers.
Light trucks have consistently outperformed other vehicle types, thanks to their versatility, functionality, and appeal to many buyers. Despite market fluctuations, this segment remains the cornerstone of U.S. auto sales.
SUVs rule the road
- The U.S. auto market is witnessing a clear winner—SUVs are dominating, accounting for a record-breaking 58% of all vehicle transactions between January and October 2024, as reported by Edmunds.
- Smaller Cars Lose Ground: Compact cars saw their market share drop to an all-time low of 19%, reflecting a significant shift in consumer preferences toward larger, more versatile vehicles.
7. Supply chain challenges in the auto industry
The automotive supply chain is complex, with every vehicle made up of thousands of parts from suppliers worldwide. Disruptions can make it harder for auto repair shops to get parts, raise prices, and affect customer satisfaction. Here are four major challenges and how they impact your business.
1. Oversight of procured parts
- The problem: Vehicles rely on tens of thousands of components sourced from a global network of suppliers. Delays in even one part of the chain can lead to inventory shortages and disruptions.
- Impact on auto repair shops: When parts don’t arrive on time, repairs are delayed, and customers are left waiting. This can hurt your reputation, lead to revenue loss, and create operational bottlenecks.
2. Global factors and consumer shifts
- The problem: Political events (like tariffs), natural disasters, and changing consumer preferences (e.g., the rise of EVs) can cause unpredictable supply chain disruptions.
- Impact on auto repair shops: Rising costs due to tariffs or shipping delays mean pricier parts for you and your customers. Additionally, the shift toward EVs may require you to upskill your team and invest in new equipment to stay competitive.
3. Poor visibility of fluctuating costs
- The problem: Supply chain costs—raw materials, transportation, and labor—fluctuate frequently. External factors like economic downturns or sudden demand spikes further complicate pricing.
- Impact on auto repair shops: When part prices increase unexpectedly, your profit margins shrink. This could force you to pass higher costs onto customers, which may impact customer satisfaction.
4. Low-quality manufacturing
- The problem: Poor manufacturing practices lead to defective or low-quality parts, which are not only unsafe but can also damage a shop’s reputation.
- Impact on auto repair shops: If faulty parts are installed, customers may return with complaints or even safety concerns. This can harm customer trust, increase your liability, and lead to wasted time replacing defective parts.
8. What’s ahead for auto sales in 2025?
The auto industry is gearing up for a year of cautious optimism in 2025, with S&P Global Mobility projecting global new vehicle sales to reach 89.6 million units, a modest 1.7% increase compared to 2024. But what does this mean for the industry, and why should auto repair shop owners care? Let’s break it down:
- Global trends: While the world inches toward recovery, challenges like high vehicle prices, affordability concerns, and fluctuating interest rates will shape demand. For auto repair shop owners, this means customers might hold onto their cars longer, opting for repairs instead of replacing their vehicles.
- US market outlook: US vehicle sales are expected to rise to 16.2 million units, a 1.2% increase from 2024. However, factors like sticky inflation, uncertain consumer confidence, and potential tariff impacts will keep growth subdued.
- China’s rapid growth: Mainland China continues to lead the pack, with sales forecasted to hit 26.6 million units, up 3.0% from 2024. Generous government incentives and lower battery costs are fueling the electric vehicle (EV) boom, with EV penetration expected to reach 58% in 2025.
- Europe’s slow progress: Europe is expected to flatline around 15 million units, reflecting cautious customers and new emission rules. Slower growth in EV demand and tariff uncertainties could further complicate the market.
Why does it matter for auto repair shop owners?
These sales projections directly affect how auto repair shops operate:
- Older cars on the road: Slower sales mean more vehicles staying in use, which translates to increased demand for repairs and maintenance.
- Adapting to EV growth: With EV sales surging, particularly in China and gradually in other regions, auto shops need to prepare for servicing electric and hybrid vehicles.
- Economic uncertainty: Unpredictable tariffs and policy changes might shift repair costs or parts availability, so staying informed is critical.
As 2025 unfolds, understanding these trends will help auto repair shop owners position themselves to thrive in a rapidly evolving market.
Closing thoughts
Auto sales statistics aren’t just numbers—they’re a window into your customers’ behavior and your shop’s opportunities. Whether it’s the rise of EVs or the dominance of SUVs, these trends all point to one thing: being prepared is the key to success.
Take a moment to reflect on your shop’s current strengths and opportunities for growth. Are you ready for what’s next?
