General Motors (GM) is experiencing significant growth in electric vehicle (EV) sales, with data showing a notable increase in sales through August, CNBC reports.
The Detroit automaker reported selling nearly 21,000 EVs in the US during July and August, which is close to matching its total sales for the entire second quarter. These back-to-back record months have brought GM within about 2,000 units of Ford’s EV sales during the same period, although it remains more than 20,000 units behind Hyundai and Kia.
Despite earlier challenges in EV production, software issues, and supply chain constraints, GM is optimistic about its sales momentum, thanks in part to an expanding lineup of electric vehicles priced between approximately $35,000 and over $300,000.
“We are definitely outstripping the industry in terms of growth, in terms of EVs,” stated Rory Harvey, GM’s president of global markets.
Harvey highlighted the company’s comprehensive EV offerings.
Through August, GM’s EV sales increased by around 70% compared to the previous year. Harvey noted this surge represents a significant improvement in GM’s EV performance and expressed confidence in a strong finish for the year. GM has not specified a timeline for overtaking competitors in EV sales but believes it is positioned for growth as more models are introduced.
Currently, GM offers eight Ultium-based EVs, which utilize its proprietary electric vehicle architecture and battery technology. These models include popular crossovers like the Chevy Equinox and Blazer, alongside luxury options such as the Cadillac Celestiq, which retails for approximately $300,000. By the end of the year, two more Cadillac EVs, the electric Escalade and Optiq crossover, are expected to join the lineup, bringing GM’s total to ten models.
The growing lineup has raised expectations for increased sales, especially as GM has invested heavily in these vehicles. However, the profitability of EVs remains a concern, as they are currently less profitable than traditional gasoline-powered models. GM anticipates that once it reaches production levels of 200,000 units, EVs will become profitable on a contribution-margin basis.
Despite the challenges, GM is committed to its goal of transitioning to an all-electric future. CEO Mary Barra has emphasized that the automaker plans to offer exclusively electric vehicles by 2035, although some previously announced targets have been adjusted or withdrawn. GM maintains a revised target of producing between 200,000 and 250,000 EVs this year, reflecting a downward adjustment from earlier forecasts.
Harvey indicated the company’s readiness to adjust production levels based on market conditions.
“You have to plan a number of years ahead in terms of what you’re going to do,” indicating the company’s readiness to adjust production levels based on market conditions,” he said.
