General Motors Chairman and CEO Mary Barra is focused on “winning new customers” as electric vehicle (EV) sales soared during the second quarter.
In the second quarter GM reported a 40% year-over-year growth in U.S. EV deliveries, outpacing the industry’s 11% increase. The Cadillac Lyriq emerged as the top luxury EV in 22 states. GM is scaling production of models like the Chevrolet Equinox EV and preparing for upcoming launches such as the GMC Sierra EV and Cadillac Optiq to drive future growth. Despite market adjustments, GM remains focused on sustainable growth and profitability in the EV sector, supported by strategic partnerships and advancements in battery technology.
Next year, Barra noted, GM will follow with the Cadillac Celestiq, adding the company would then have a “beautifully designed EV” in every global luxury SUV segment.
“We’re going to focus on winning new customers with these nameplates, as well as with the next generation Chevrolet Bolt EV because they represent the largest growth opportunities for us,” Barra said during the company’s Q2 earnings call on July 23.
“But we’ve also made adjustments to ensure we have a balanced approach as the market develops. This includes deferring Buick’s first EV which had been planned for 2024. As we’re expanding choice, other barriers to EV adoption like public charging access are also improving.”
GM’s EV portfolio is expanding successfully and capturing greater market share, Barra noted, adding, “these initial outcomes are promising, as disciplined volume expansion is crucial for achieving positive variable profits from our EV portfolio by the fourth quarter, while also bolstering our strong ICE (internal combustion engine) margins.”
Early EV sales are “mostly incremental,” Barra added, as 54% of customers are new to GM. “We’re working to increase our conquest rate by raising awareness and launching new models. Our best-selling EV so far this year is the Cadillac Lyriq and it is now the market-leading luxury EV in 22 states including Florida, Texas and Michigan.”
The GMC Hummer EV and the Chevrolet Blazer EV are also building momentum, she said. To unleash the next cycle of EV growth, “we’re scaling production of the Chevrolet Equinox EV with its unique combination of performance, technology, range and affordability. We delivered our first 1,000 units late in the second quarter and the reaction from customers, dealers and the media is very strong.”
In fact, according to Barra, one product reviewer said, “Chevy seems positioned to grab a piece of the pie that no one else has quite grabbed onto yet, and we think that is spot on.”
GM is working to finalize commercial agreements with Tesla to give its customers access to their charging network. “The Ionna fast charging venture we joined is expected to bring its first chargers online before the end of the year, and customers are telling us the drive-thru plazas we’re rolling out with Pilot company are the best public charging experience out there.”
Given GM’s promising EV sales growth and trajectory, Barra said GM is “committed to growing responsibly and profitably in any demand environment. Over the next few years, third-party forecasters now see the EV market growing steadily, but more slowly than it did over the last few years.”
As a result, she said GM is adjusting its spending plans to make sure “we’re capital efficient and moving in lockstep with customers. For example, our Altium cells joint venture continues to ramp up domestic battery cell supply this year, which is helping drive profit improvement in our EV portfolio.”
Moving forward, Barra said, “We’re going to bring additional capacity online in a measured cadence. This will enable us to better optimize our battery chemistry and form factors to meet our customers’ needs on cost and range.”
GM also plans to reopen the Orion assembly as a battery electric truck plant in mid-2026, Barra noted, adding, “We’re confident that we can meet customer demand for standout EV trucks in the interim by leveraging the production capability and flexibility we have in factory zero. We will also continue to take advantage of the flexibility we have to mix production between ICE and EV at key plants.”