GM's sales in the second quarter decreased by four percent due to a decline in electric vehicle demand, while Toyota continued to gain ground.

      GM sold 714,896 vehicles in Q2, marking a four percent decrease compared to the previous year, as demand for electric vehicles diminished and Toyota continued to close the sales gap. General Motors experienced just over a four percent drop in US sales for the second quarter, attributed to declining interest in its all-electric vehicles and Chevrolet Silverado pickups. From April to June, GM reported sales of 714,896 units, down from 746,588 in the same quarter last year. Total sales for the first half of the year reached around 1,300,000 units, reflecting a nearly seven percent decline compared to the prior year.

      The outcome was slightly better than analysts had anticipated. Cox Automotive had projected a decline of about five percent for Q2 and over seven percent for the first half. GM North America President Duncan Aldred noted in a statement that the business is performing well and that customer demand remains strong, particularly for trucks and SUVs.

      However, this overall figure masks significant issues within GM’s electric vehicle strategy. In the first quarter, sales of the Blazer EV plummeted by 83 percent year over year, while Silverado EV sales dropped by 41 percent. It was also reported that the decline in EV sales persisted into Q2. Earlier this year, GM halted development of its next-generation electric truck and incurred approximately eight billion dollars in EV-related costs during 2025, which included write-downs tied to abandoned production plans and canceled battery contracts.

      The decline coincides with Toyota increasingly closing the gap with GM in the race to be America's top-selling automaker. Last week, Cox Automotive predicted that Toyota would narrow the gap to under 100,000 vehicles in the first half of the year, the closest the two companies have been since Toyota briefly led in 2021. Toyota's growth has been bolstered by its hybrid lineup, which is expanding at around 10 percent, while EV sales industry-wide have decreased by more than 23 percent.

      GM’s absence of hybrid models has left it particularly vulnerable. The company previously dismissed hybrids as a transitional phase and invested heavily in a full EV lineup, resulting in the Corvette E-Ray being its sole hybrid. Meanwhile, competitors like Toyota, Honda, and Hyundai have embraced hybrids as the market evolved. CEO Mary Barra stated in January that GM is developing a hybrid and plug-in hybrid strategy but has not provided a timeline for production.

      Tariffs are compounding the challenges. GM has forecast gross tariff expenses between two and a half billion and three and a half billion dollars for 2026, largely due to Section 232 tariffs on steel and aluminum imports. This year, twelve EV models have been canceled or discontinued in the US market, as 25 percent import tariffs and the end of the $7,500 federal tax credit have rendered many electric models economically unviable.

      GM is not the only automaker facing difficulties. Cox Automotive estimates that Ford's sales for the first half of the year declined by more than 10 percent, while Tesla's sales fell nearly 15 percent. In contrast, Stellantis saw a rise in sales of nearly five percent, marking its first market-share gain since 2019. The trend is evident: automakers with robust hybrid or domestically produced lineups are performing better, while those overly reliant on EVs without hybrid alternatives are struggling.

      The overall US new-vehicle market is projected to conclude 2026 with approximately 15,800,000 units sold, a decline of about three percent from 2025, according to Cox Automotive. For now, GM holds the sales lead, but the second consecutive quarterly drop, combined with Toyota's upward momentum and a visibly stalling EV strategy, puts GM in a defensive position, a status it has largely maintained since 1931.