GM's August EV sales surge as federal incentives wane

General Motors recorded its highest-ever monthly electric vehicle sales in August, with more than 21,000 EVs sold across its Chevrolet, Cadillac, and GMC brands. The sales jump comes as customers are purchasing vehicles ahead of the September 30 expiration of federal EV tax credits.

The company's performance was driven by a portfolio that includes the Chevrolet Equinox EV, the Cadillac LYRIQ, and the GMC Sierra EV. "August was our best month ever for EV sales," said Duncan Aldred, Senior Vice President and President, North America. Aldred noted the company's expectation of continued strong demand in September, acknowledging that sales in the following quarter will likely be lower as the market adjusts to the loss of incentives.

The manufacturer has no plans to overproduce vehicles to meet the current demand. Aldred stated that while a smaller EV market is likely for a period, GM believes it can continue to gain market share. This outlook is supported by its diverse portfolio, including the affordable Chevrolet Equinox EV and the upcoming next-generation Chevrolet Bolt.

 and the new, lower-cost lithium iron phosphate (LFP) cells that the company's joint venture, Ultium Cells, plans to produce at its Spring Hill, Tennessee, plant beginning in late 2027.  In March, the company celebrated the production of its 100 millionth battery cell at the Lordstown facility.

The company is also leaning on its gasoline-powered vehicle lineup to provide stability and profitability as the EV market navigates a post-incentive landscape. Aldred said the strength of its internal combustion engine  portfolio will provide "flexibility and profitability that EV-only companies lack." GM is set to report its full third-quarter sales results on October 1.