General Motors is facing a rough patch, reporting a 5.5% drop in sales for the third quarter, with 670,974 vehicles sold. The Detroit automaker has seen its all-electric vehicle sales take a nosedive, as consumer interest in EVs cools off. This downturn follows a surge last year, fueled by the looming end of federal incentives of up to $7,500 for electric vehicle purchases.
In the latest quarter, GM's electric vehicle lineup took a hit. The Equinox EV saw a dramatic 92.4% decline, with only 1,905 units sold. The Blazer EV and Hummer EV also faced steep drops, falling 84.4% and 72.9%, respectively. But GM is not throwing in the towel. The company is sticking with its broader vehicle lineup, including the introduction of new full-size pickup trucks.
On the other hand, Toyota Motor capitalized on the rising demand for hybrids and electrified vehicles, reporting a 0.6% increase in sales for the quarter, totaling 633,223 units. Over 57% of Toyota's sales were EVs and hybrids, with electrified vehicle sales jumping 28.5% to 363,367 units. This success has helped Toyota close the sales gap with GM to less than 136,000 units, a notable reduction from last year's gap of about 335,000 units.
Honda Motor also posted positive results, with a 9.3% rise in U. S. third-quarter sales. The automaker set a record by selling over 106,000 hybrid units during the quarter. Lance Woelfer, head of American Honda Motor's U. S. sales, pointed to the growing consumer interest in hybrids, saying, "We're finding more and more consumers are figuring out hybrids meet their needs."
High fuel prices, with the AAA national average at $4.41, are shaping consumer preferences, particularly impacting sales of large trucks and SUVs, areas where GM has traditionally been strong. While GM's full-size pickups held steady, its more affordable vehicles showed potential. The Chevrolet Trailblazer saw a 51% sales boost, while the Buick Envista and Chevrolet Trax rose 18.4% and 16.3%, respectively.
Despite the hurdles, Duncan Aldred, President of GM North America, remains hopeful about the company's prospects. Last month, GM unveiled new details about its V-8 engines for pickup trucks, aiming to maintain its edge in truck sales.
Meanwhile, Cox Automotive underscored the overall strength of the new vehicle market, boosting its 2026 forecast by 2% to 16.1 million units. The firm noted that hybrid vehicles are expected to capture a growing share of the market as consumers grapple with rising gas prices.
