Detroit-based automaker, General Motors (GM), experienced a significant increase in US vehicle sales during the second quarter, marking a rebound from the supply chain challenges faced last year.
The company reported sales of 691,978 new vehicles from April to June, representing an 18.8% growth compared to the subdued results of the same period in 2022.
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Increasing demand for new vehicles
GM’s second-quarter sales, along with other automakers such as Honda, Nissan and Stellantis, indicate continued strong demand for new vehicles as inventories improve from the historically low levels caused by the coronavirus pandemic and supply chain disruptions.
Analysts in the auto industry project a 16% to 18% increase in US new vehicle sales during the second quarter compared to the previous year.
GM’s impressive sales performance solidifies its position as the country’s largest automaker for the first half of the year. With sales up 18.3% to nearly 1.3 million vehicles, GM has reclaimed its long-standing title after Toyota briefly surpassed it in 2021.
This marks the first time since 1931 that GM did not hold the top spot as the bestselling car company in the US Toyota reported sales of more than 1 million vehicles in the US through June.
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By GlobalDataGM faces criticism and targets for EV production
GM’s electric vehicle (EV) sales reached 36,300 units in the first half of this year, including 15,652 in the second quarter. However, EVs accounted for only 2.8% of the company’s total sales during this period.
GM had previously set targets to produce 50,000 EVs in the first half of the year and 100,000 in the second half. Production challenges and inventory logistics have led to sales trailing behind production.
GM has faced criticism for its slower pace of EV production compared to Tesla, which continues to dominate the US market. The majority of GM’s EV sales in the first six months were of the outgoing Chevrolet Bolt models, which will be discontinued later this year.
The company has been slow to increase production of its newer EVs, such as the GMC Hummer and Cadillac Lyriq, which are part of the Ultium vehicle lineup.
GM’s plans and challenges ahead
GM CEO Mary Barra acknowledged the production constraints of newer EVs due to domestic battery production taking longer than expected.
Barra expressed a commitment to accelerating EV production, highlighting upcoming launches of important EV models, including new versions of the Chevrolet Silverado, Blazer and Equinox.
GM is also set to introduce an electric delivery van and the high-end Cadillac EV, Celestiq, priced at more than $300,000. Further details on production progress will be provided during the automaker’s second-quarter earnings report on 25 July.
