In the second quarter, GM's sales decreased by four percent due to a decline in electric vehicle demand and increasing competition from Toyota.

      General Motors (GM) sold 714,896 vehicles in the second quarter, marking a four percent decrease from the previous year as demand for electric vehicles (EVs) waned and Toyota continued to close the gap. GM's US sales fell just over four percent compared to last year, with the Detroit automaker reporting vehicle sales of 714,896 from April to June, down from 746,588 during the same period in 2025. First-half sales totaled approximately 1,300,000 units, down nearly seven percent from the prior year.

      These results were somewhat better than analysts had predicted. Cox Automotive anticipated a five percent decline in the second quarter and more than seven percent for the first half. Duncan Aldred, GM North America President, stated in a release that the business is performing well and customer demand is still strong, particularly for trucks and SUVs.

      However, the overall figure conceals a significant challenge with GM’s electric vehicle approach. In the first quarter, sales of the Blazer EV plummeted by 83 percent year over year, and Silverado EV sales dropped 41 percent. CNBC reported that the decline in EVs persisted into the second quarter. Earlier this year, GM halted development of its next-generation electric truck and incurred approximately eight billion dollars in EV-related expenses during 2025, which included write-downs related to abandoned production plans and canceled battery contracts.

      As Toyota continues to narrow the gap as America’s top-selling automaker, Cox Automotive projected last week that Toyota would close in to within 100,000 vehicles through the first half, the closest the two companies have been since Toyota briefly held the title in 2021. Toyota’s growth has been fueled by its hybrid lineup, which is expanding by about 10 percent, while EV sales industry-wide have dropped more than 23 percent.

      GM’s absence of hybrid models has left it particularly vulnerable. The automaker dismissed hybrids as merely transitional technology and heavily invested in a full EV portfolio, with the Corvette E-Ray as its sole hybrid. In contrast, competitors like Toyota, Honda, and Hyundai have embraced hybrids as the market evolved. CEO Mary Barra mentioned in January that GM is developing a hybrid and plug-in hybrid strategy but has not provided a timeline for production.

      Tariffs are increasing the strain. GM has estimated gross tariff costs for 2026 to be between two and a half billion and three and a half billion dollars, due to Section 232 tariffs on steel and aluminum imports. This year, twelve EV models have been discontinued or canceled across the US market, as 25 percent import tariffs and the expiration of the $7,500 federal tax credit have rendered many electric models financially unviable.

      GM is not alone in its struggles. Cox Automotive projects that Ford’s first-half sales plummeted by over 10 percent and Tesla's volumes fell nearly 15 percent, whereas Stellantis saw a nearly five percent increase in sales, marking its first market-share gain since 2019. The trend indicates that automakers with strong hybrid or domestically produced lineups are faring better, while those relying on EVs without hybrid alternatives are struggling.

      The overall US new-vehicle market is projected to close 2026 with approximately 15,800,000 units sold, reflecting a three percent decline from 2025, according to Cox Automotive. GM currently leads in sales, but the second consecutive quarterly decline, alongside Toyota’s rising momentum and a visibly stagnating EV strategy, puts the company in a precarious position defending a status it has maintained nearly uninterrupted since 1931.