In the first three months of 2024, GM experienced a loss in EV market share in the US. However, the company remains optimistic about regaining its position through the introduction of new models like the Chevy Equinox EV and improved battery production in the latter half of the year. Despite this setback, GM reported a record first-quarter revenue of $43 billion, representing an 8% increase from the previous year and a consistent 15% Compound Annual Growth Rate (CAGR) growth in the past 24 months.
Although GM saw a 36% increase in Ultium-based vehicle deliveries during the quarter, total EV sales declined by over 20% year-over-year due to the phasing out of the company’s affordable Chevy Bolt EV. The Cadillac Lyriq and GMC Hummer EV, on the other hand, experienced solid sales growth in Q1, with the Blazer EV and Silverado EV also contributing to the overall Ultium sales growth. Despite these positive results, GM’s market share in the US EV market decreased from the previous quarter due to a significant drop in Chevy Bolt EV sales.
GM accounted for 6.2% of the US EV market in the first quarter of 2024, a decrease from 8.4% a year ago. Of the over 594,000 vehicles GM sold in the US during Q1, only about 2.7% were EVs. The company aims to significantly ramp up its EV market share and profitability in the coming months, setting a target to produce around 200,000 to 300,000 Ultium EVs this year, representing a substantial increase from previous years.
CEO Mary Barra has emphasized that 2024 will be the “year of execution” for GM as it strives to regain its position in the EV market. With plans to double its current battery module production capacity by the end of summer, GM is confident that it can reclaim its market share. The Cadillac Lyriq, which accounted for 20% of brand sales in Q1, is expected to continue driving strong demand with a significant percentage of new buyers to GM and Cadillac.
In an effort to boost its market share, GM is introducing new models like the affordable electric Chevy Equinox EV, which offers over 300 miles of range and starts at $34,995. With various trim options available, including the 2LT at $43,295, the Equinox EV is positioned as one of the most cost-effective EVs in the US market. Additionally, the Chevy Blazer EV and Silverado EV RST are eligible for a $7,500 tax credit, providing further incentives for customers to consider electric vehicles.
Looking ahead, GM is set to expand its EV lineup with models like the Cadillac CELESTIQ, OPTIQ, and Escalade IQ, as well as the GMC Sierra EV Denali. The company anticipates achieving a positive variable profit in its EV business in the second half of 2024. With a focus on increased production capacity, new model introductions, and competitive pricing, GM is committed to regaining its footing in the US EV market and driving growth in its electric vehicle segment.
