GM Sales Drop 4.2% in Q2 as US Demand for Electric Vehicles Slows

General Motors reported a 4.2% decline in its U.S. sales during the second quarter, driven by weakening demand for fully electric vehicles and Chevrolet Silverado pickup trucks compared to the same period last year. The Detroit-based automaker sold 714,896 vehicles between April and June, down from 746,588 units in Q2 2025. First-half sales totaled 1.3 million vehicles, a 6.8% decrease year-over-year.

Sales Performance and Market Context

Despite the decline, GM's Q2 performance slightly exceeded the forecast from Cox Automotive, which had predicted a 7.2% drop for the first half, including a 5.1% decline in the second quarter. The broader U.S. auto industry is expected to remain roughly flat compared to last year, with Cox Automotive forecasting a 0.5% drop and J.D. Power projecting a 0.7% increase. This places GM's performance slightly below the industry average for the quarter.

Electric Vehicle Segment Struggles

GM's all-electric vehicle sales plummeted by 33% in Q2 compared to the same period last year. The sharp decline is attributed to a surge in EV demand during Q2 2025, which was driven by consumer expectations that the Trump administration would eliminate federal incentives of up to $7,500 for EV purchases. The current drop highlights the market's sensitivity to policy changes and the challenges automakers face in sustaining EV momentum without strong government support.

Management Commentary and Outlook

Duncan Aldred, head of GM North America, stated in a press release: "Our business is performing well, and customer demand remains solid, particularly for our trucks and SUVs. The diversity, depth, and appeal of our vehicle lineup enable us to lead the market in sales while maintaining discipline in inventory management, pricing, and incentives to achieve strong profit margins." Analysts expect GM to underperform the broader U.S. auto sector in Q2, as the company navigates shifting consumer preferences and policy uncertainties in the electric vehicle market.