GM slashes EV sales expectations for this year

General Motors (GM) has reduced electric vehicle (EV) sales expectations for this year due to slowing EV demand confirms its top official.

GM Chief Financial Officer Paul Jacobson told CNBC that the automaker expects 200,000 to 250,000 EV production in 2024. It is reduced from the previous 200,000 to 300,000 EV production forecast. The company will now follow demand-based production and is said to be profit-positive at 200,000 units.

Jacobson said GM still expects to account for around 8 percent of the EV industry. That’s lower than its competitor, predicting 10 percent of the overall EV industry share in 2024.

Recently, EV sales have begun to slow down due to reduced market demand. Cox Automotive reported in April that Kelly Blue Book data showed that the first quarter of 2024 witnessed a QoQ (quarter on quarter) decline in EV sales but up 3 percent year-on-year.

Chevrolet Equinox EV (Image Source – Chevrolet)

In a statement published by NBCNews, GM CEO Mary Barra said the company’s EV transition may take up to 10 years. It is now aiming to sell all-electric vehicles by 2035.

It has also unveiled a new entry-level Chevrolet Equinox EV at around $35,000 before a $7,500 Federal tax credit. GM also resumed Chevrolet Blazer EV sales following a pause due to a software issue. Last year, GM discontinued the Chevy Bolt EV, its most popular and affordable model to bring the Ultium platform across all new EVs.

“So at the lower end of that, and I think it reflects the momentum that we have in the business,” said Jacobson. This new revelation also follows a new $6 billion stock repurchase authorization approved by its board on the face of traditional gas-powered vehicles.