GM sales drop in US as Toyota, Hyundai gain

General Motors (GM) reported a decline in third-quarter auto sales on Thursday, with a 5.5% drop compared to the previous year. The decline was primarily driven by a drop in electric vehicle (EV) sales, while gasoline-powered vehicles failed to offset this loss. Toyota and Hyundai, on the other hand, saw an increase in sales, with Toyota experiencing a 0.6% rise and Hyundai notching a 5.4% increase.

The drop in GM's EV sales was particularly notable, with sales of the Chevrolet Equinox SUV plunging by more than 90%. However, GM reported a boost in sales of affordable small SUVs, with the Chevrolet Trax, Trailblazer, and Buick Envista all seeing an increase of 27%. Analysts suggest that persistent inflation continues to impact consumers, but they are still visiting dealerships and purchasing vehicles, sometimes opting for lower-cost options if their first choice is unavailable.

The removal of the EV tax credit, valued at up to $7,500 per vehicle, negatively affected GM's electric fleet. In contrast, other automakers saw strong hybrid sales during a period of high gasoline prices. Toyota's third-quarter sales increased by 29.2%, driven by a surge in electrified vehicles, predominantly hybrids. Toyota senior vice president Andrew Gilleland emphasized that customers desire choices, and Toyota's multi-path strategy caters to various customer needs, offering options that align with their lifestyles.