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General Motors Gains Momentum in Electric Vehicle Sales
General Motors (GM) is witnessing a significant surge in its electric vehicle (EV) sales, marking a crucial turning point in the company's transition to an all-electric lineup. In July and August, GM sold nearly 21,000 EVs in the U.S., a figure that almost matches its entire second-quarter EV sales. This achievement sets GM on a path to rival its competitors, particularly Ford, and closes the gap with Hyundai/Kia.
Record-Breaking Sales
GM's EV sales have increased by about 70% year-over-year, with the company selling a record number of EVs in consecutive months. This growth is attributed to GM's extensive EV lineup, which includes models priced from around $35,000 to over $300,000. Rory Harvey, GM's president of global markets, including North America, described this as a "step change" in the company’s EV performance.
Competitive Landscape
While GM still trails behind Tesla, the leader in EV sales, the company is now within about 2,000 units of Ford's sales through August. However, it remains more than 20,000 units behind Hyundai/Kia. Despite these challenges, GM's diverse array of EV models positions it well for future growth. According to Cox Automotive, EVs are projected to account for roughly 10% of total U.S. vehicle sales by the end of the year, a 73% increase from the previous year.
Profitability and Long-Term Goals
Although EVs are currently less profitable than traditional gas-powered vehicles, GM anticipates that they will become profitable once production reaches a certain scale. Under CEO Mary Barra's leadership, GM has committed to transitioning to an all-electric vehicle lineup by 2035. This long-term strategy involves significant investments in EV development and a focus on managing consumer demand to fulfill it.
Industry-Wide Context
The automotive industry is undergoing a significant transformation as companies like GM, Ford, and Hyundai/Kia invest heavily in EV technology. While there are challenges, including slower-than-expected industry-wide EV adoption and production hurdles, the momentum is clear. As consumers increasingly adopt EVs, traditional automakers are in a competitive battle to secure market share behind the dominant player, Tesla.
Conclusion
GM's recent EV sales figures indicate a promising future for the company in the electric vehicle market. With a robust lineup and a strong growth trajectory, GM is poised to play a major role in the industry's transition to electric vehicles. As the market continues to evolve, GM's ability to manage consumer demand and fulfill it will be crucial in achieving its long-term goals.
Original Article: https://www.cnbc.com/2024/09/23/gm-ev-sales-momentum-building.html
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