GM preparing for dramatic EV sales decline to end the year
General Motors has been the #2 EV brand in the United States for a while now, behind only Tesla in total sales, and that position was maintained in August. In fact, GM’s combined sales of over 21,000 units set a new all-time monthly record for the company’s EV sales, surpassing the previous monthly record of over 19,000 EVs sold by the company in July.
“August was our best month ever for EV sales – and we expect that buying surge to pay long-term dividends, given our industry-leading manufacturer loyalty, and EV customers’ overwhelming commitment to the technology,” said Duncan Aldred, Senior Vice President and President, North America. However, Aldred was also realistic about an expected dive in EV sales for GM as the end of the year approaches.
EV Tax Credits Ending Later This Month
Chevy
This month is the last chance for buyers to take advantage of the federal tax credit on EVs, allowing qualifying owners to save up to $7,500 on the cost of a new EV. However, the IRS recently explained that even if you don’t take delivery of a new EV by the end of this month, you can still qualify for the tax credit—provided a binding contract is in place by September 30, and that at least one payment has been made by this date.
“We’re expecting strong demand once again in September,” said Aldred of GM’s EV sales. “The question, of course, is what’s next? There’s no doubt we’ll see lower EV sales next quarter after tax credits end September 30, and it may take several months for the market to normalize. We will almost certainly see a smaller EV market for a while, and we won’t overproduce.”
Aldred said GM will navigate an expected dip in EV sales by leaning on the strength of its ICE portfolio, with the brand still seeing impressive sales for full-size pickups and SUVs.
3 GM EVs Saw Strong Demand In August
2024 Chevrolet Equinox EV Chevrolet
Although GM didn’t report specific sales figures for last month, Aldred pointed out that its sales record was driven by high demand for the Chevrolet Equinox EV, Cadillac Lyriq, and GMC Sierra EV. The Equinox EV is GM’s cheapest EV on sale right now, at least until the new Bolt arrives. With the tax credit, it’s possible to buy an Equinox EV for under $30,000. It’s this model that’s expected to be most impacted by the vanishing tax credits, as more luxurious, expensive models like the Lyriq and Sierra EV will see a lower percentage increase in their overall cost to the consumer.
Once the tax credit falls away, an expected 27% decline in EV sales in the U.S. is expected, according to a Bloomberg report. That’s well over 300,000 fewer EV registrations annually. This will hit EV-only brands harder, whereas GM can still rely on big-selling ICE cars to weather the storm.