The car market in the US shows positive signs of growth, with nearly 1.3 million sales recorded in January and February 2024, representing a 10.7 percent increase compared to the same period last year. The popularity of hybrids and a sharp rebound in their inventory played an important role in bringing more buyers into dealers, helping the majority of automakers improve their year-to-date numbers.
New vehicle deliveries rose 9.2 percent in February, which is well above the forecasted 5.6-6.3 percent growth based on earlier reports by J.D. Power, GlobalData, Cox Automotive, and S&P Global Mobility. Likewise, the seasonally adjusted annualized sales rate exceeded the 16 million mark, flying over the forecasted 15.4-15.5 million.
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Automotive News reports that bigger discounts, improved dealer inventories, and milder weather played their role in the sales increase. According to a preliminary report by GlobalData, the daily vehicle selling rate rose to 50,000 in February, up from 42,400 in January. This marks the 19th consecutive month showing a year-over-year growth.
U.S. Light-Vehicle Sales – February 2024
Source: Automotive News Research & Data Center
Honda and Toyota were among the big winners last month, posting sales growth of 32 percent and 16 percent respectively. Ford also scored double-digits, gaining 11 percent and remaining at the top of the food chain regarding sales volume.
“Hybrids Are Rockin”
All three companies benefited from the popularity of their electrified vehicles. Toyota reported an 84 percent sales growth for its hybrids and EVs, with Prius sales increasing by a staggering 363 percent. In the same context, Ford scored a 32 percent increase in hybrid deliveries, with the Maverick accounting for more than half of the sales volume. Finally, Hyundai saw a 7 percent increase in EV, hybrid, and plug-in hybrid model sales.
David Christ, head of the Toyota division at Toyota Motor North America told Automotive News: “Hybrids are just rockin. Now that we actually have cars on the lot – even though we don’t have a ton – customers are able to drive a gas product and a hybrid when we have both powertrains in the same car”. The high-ranked official mentioned the Toyota RAV4 as a fitting example, as its hybrid version is in greater demand but in shorter supply compared to the ICE-only equivalent.
Another contributing factor to the market’s growth is the increased deliveries to commercial customers and daily rental operators which were higher than in recent years. GlobalData reports that fleet sales totaled 257,000 units last month, grabbing a hefty market share of 20.6 percent.
