General Motors’ (G.M.) – Get a free report argues that the United Auto Workers (UAW) should end its strike to avoid the risk of being outmaneuvered by competitors in the electric vehicle market.
In fact, there is a lot at stake. Electric vehicles are increasingly displacing internal combustion engine (ICE) vehicles, and altering General Motors’ plans could result in a loss of market share and possibly end its dominance as the leading automaker. USA.
The company is already under pressure from a key rival that overtook it last quarter, ousting it from the top three U.S. electric vehicle companies.
The electric vehicle market is expanding
Consumers bought more than 313,000 electric vehicles in the third quarter, about 7.9% of all vehicles sold, according to Kelley Blue Book. Wall Street analysts expect electric vehicles to account for 40% of passenger cars sold in the United States by 2030.
Related: This Surprising Luxury Brand Is Shattering Tesla’s EV Throne
So far, the US EV market is dominated by Tesla (TSLA) – Get a free report. However, General Motors was a pioneer in electric vehicles when it launched the EV1 to target environmentally conscious buyers in the 1990s.
The EV1 was not a success, but Tesla cars have gone mainstream due to the car company’s focus on luxury and performance, a strategy that has allowed it to successfully compete in the electric SUV market with its Model Model Y and win over buyers. into the sub-$40,000 family car market with the Model 3.
General Motors, Ford (F) – Get a free reportand Stellantis (STLA) – Get a free report, owners of Dodge and Chrysler, were surprised by Tesla’s success. As a result, they have spent billions playing catch-up on projects that are only now coming to fruition.
For example, an electric version of Chevy’s best-selling Silverado pickup truck is expected to roll off assembly lines soon. The same goes for the electric Chevy Blazer and Equinox. It also has plans to reboot the Chevy Bolt, one of the best-selling electric vehicles in recent years.
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General Motors’ efforts can’t happen soon enough. It’s far from the only major automaker knee-deep in designing and launching new electric vehicles. Dozens of new models are expected to be launched next year, paving the way for a broad shake-up of market share.
We are already starting to see the impact. Total U.S. EV sales increased 50% in the third quarter from a year ago, and of companies with more than 1,500 EVs sold last quarter, eight saw EV sales more than double that a year ago.
As a result, Tesla’s market share fell from 62% to 50%, and GM’s market share in Cadillac, GMC and Chevy electric vehicles fell from 7.3% to 6.4% last year.
General Motors slows as Hyundai sales rise
The increasing availability of Hyundai’s new line of electric vehicles may be one of the reasons General Motors lost ground in electric vehicles last quarter.
Hyundai sold 11,665 Ioniq5 electric vehicles last quarter, up 143% from the third quarter of 2022. It also sold more than 5,000 of its new Ioniq6 electric vehicles and nearly 2,900 Kona electric vehicles, up 184% from last year.
In total, Hyundai sold 19,630 electric vehicles in the third quarter, giving it a market share of 6.3%, up from less than 3% last year. Including sales of the high-end luxury Genesis brand, the South Korean car company sold more than 1,400 more electric vehicles in the quarter than General Motors, lifting GM to fourth place among electric vehicle makers in the United States last quarter.
Hyundai’s rapid rise in the electric vehicle market may continue if the auto strike affects General Motors’ electric vehicle production, reducing inventories available at dealerships. If so, the gap between the two automakers could widen.
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