GM’s Third-Quarter EV Sales Drop Steeply Following Tax Credit Expiration

General Motors reported a 5.5% drop in total vehicle sales during the third quarter as its fully electric lineup contracted sharply following the expiration of the U.S. $7,500 federal purchase credit, according to reporting by The Next Web . Deliveries of the Chevrolet Equinox EV fell 92.4% year-over-year to 1,905 units.

The downturn affected GM’s wider EV portfolio. Sales of the Chevrolet Blazer EV fell 84.4%, while the GMC Hummer EV dropped 72.9% relative to the prior year, when GM had established a quarterly electric sales record as consumers moved to purchase vehicles ahead of the tax incentive deadline. GM delivered 670,974 total vehicles across all powertrains during the quarter, as originally reported by CNBC.

The broader U.S. vehicle market showed stability despite GM's EV downturn. Industry forecaster Cox Automotive lifted its full-year U.S. sales outlook by roughly 2% to 16.1 million vehicles.

Competitors with broad hybrid vehicle portfolios recorded gains during the period. Toyota Motor reported a 0.6% rise in quarterly sales to 633,223 units, driven by a 28.5% increase in electrified models, including hybrids, which made up more than 57% of its total deliveries. The shift narrowed GM’s lead over Toyota to under 136,000 vehicles year-to-date, down from roughly 335,000 vehicles across the entirety of last year. Honda also posted a 9.3% quarterly sales increase supported by record hybrid deliveries exceeding 106,000 units. GM currently sells only one hybrid model, the Chevrolet Corvette.

Market conditions between the U.S. and Europe diverged significantly over policy support and fuel economics. In Europe, where carbon emission regulations and a British mandate calling for 33% zero-emission sales remain active, electric cars captured 29% of new vehicle registrations in August. European drivers paid an EU weighted average fuel price of 2.092 euros per liter (approximately $8.95 per gallon), compared to an average U.S. petrol price of $4.41 per gallon (roughly 1.03 euros per liter).

Within GM’s North American lineup, lower-cost internal combustion vehicles saw solid demand. Chevrolet Trailblazer sales rose 51%, the Buick Envista increased 18.4%, and the Chevrolet Trax gained 16.3%, while the Cadillac brand dropped 25% for the year. GM is continuing capital deployment into battery technology, allocating $1 billion toward manganese-rich cells. Despite the quarterly drop in electric volume, Duncan Aldred, GM's North America president, maintained that the business is performing very well.