General Motors’ U.S. vehicle sales declined 5.5% in the third quarter of 2026 as electric-vehicle demand weakened sharply and higher gasoline prices affected purchasing decisions. The results highlight a broader shift in the U.S. auto market, where consumers are increasingly weighing fuel efficiency and affordability while demand for EVs has cooled following the expiration of federal incentives.

GM Sales Fall as EV Demand Drops Sharply

GM delivered 670,974 vehicles in the U.S. during the third quarter, compared with 710,347 in the same period of 2025. The decline extended a difficult year for the automaker, with sales down 6.4% to 2.01 million vehicles during the first nine months of 2026. EV sales were particularly weak: GM sold 25,473 electric vehicles in the quarter, down 61.7% from 66,501 a year earlier. EVs accounted for 3.8% of GM’s U.S. deliveries, compared with 9.4% a year earlier.

The comparison was affected by unusually strong EV demand in the third quarter of 2025, when consumers accelerated purchases ahead of the expiration of federal EV incentives of up to $7,500. GM’s Equinox EV sales fell 92.4% to 1,905 units, while Blazer EV sales declined 84.4% and Hummer EV sales dropped 72.9%.

Limited Hybrid Lineup Creates a Strategic Challenge

GM’s exposure to the changing vehicle mix is notable because the company offers only one hybrid model, the Corvette. By contrast, Toyota reported U.S. sales growth of 0.6% to 633,223 vehicles in the quarter, with electrified vehicles, including hybrids, accounting for 57.4% of its sales. Toyota’s electrified-vehicle deliveries increased 28.5%, helping the Japanese automaker narrow the gap with GM in the U.S. market.

The trend is also visible across the broader industry. Honda’s U.S. sales increased 9.3% in the quarter, while its hybrid deliveries exceeded 106,000 vehicles, a record level. Rising fuel prices are adding another factor, making fuel efficiency more important for consumers at a time when average new-vehicle prices remain elevated.

Strong Trucks and Smaller SUVs Provide Some Support

GM’s results were not uniformly weak. The Chevrolet Trailblazer posted a 51% increase in quarterly sales, while the Chevrolet Trax rose 16.3% and Buick Envista gained 18.4%. GM also maintained its leading position in full-size pickups and reported that its fleet business led the industry for the fourth consecutive quarter. These results suggest that demand remains stronger in several established vehicle segments despite the broader decline.

GM is also preparing for the launch of next-generation full-size pickup trucks. The company said the launch remains on track and emphasized continued investment in new vehicles, technology and its U.S. manufacturing footprint. The strategy will be important as GM attempts to offset weaker EV demand while maintaining its position in high-volume truck and SUV categories.

Going forward, investors will be watching GM’s vehicle mix, EV demand and the pace of its new-model launches. The widening preference for hybrids among some U.S. consumers could increase competitive pressure, while higher fuel costs may further influence purchasing patterns. At the same time, GM’s performance in full-size pickups, fleet sales and smaller SUVs provides areas to monitor as the company navigates a changing U.S. auto market.