General Motors reported a dip in third-quarter auto sales Thursday on plunging electric vehicle transactions, while both Toyota and Hyundai rode greater hybrid demand to sales increases.
GM reported deliveries of 670,974, down 5.5% from the year-ago level, with gains in some gasoline-powered vehicles failing to completely offset lower EV sales.
In the 2025 period, GM and other automakers saw a boom in EV sales as US consumers flocked to dealerships ahead of the expiration of a tax credit on Sept 30, 2025 following a policy change backed by US president Donald Trump.
But the surge in third-quarter 2025 EV sales translated into a more than 90% decline in GM’s sales of the electric version of the Chevrolet Equinox SUV in the just-finished quarter.
While the gasoline-version Equinox also saw a modest decline compared with last year, GM pointed to smaller sport utility vehicles as a strong point in the quarter.
Overall sales of “affordable small SUVs” were up 27 % said GM, with the Chevrolet Trax, Chevrolet Trailblazer and Buick Envista all higher.
Although persistent inflation continues to weigh on consumers, shoppers are still going to dealerships and purchasing cars, in some cases trading “down” to lower-cost options if they can’t afford their first choice, auto analysts say.
Cox Automotive estimated that overall third-quarter US sales would be 4.1 million units, down 0.7% from the year ago level.
While the disappearance of the EV tax credit, worth up to US$7,500 per vehicle, hurt GM’s electric fleet, other automakers saw strong hybrid sales in a period of high gasoline prices.
Toyota notched a 0.6% increase in third-quarter sales to 633,223, propelled by 29.2% growth in “electrified vehicles,” a division dominated by hybrids at the Japanese brand.
“Our third-quarter results reinforce a simple truth – customers want choices,” said Toyota senior vice president Andrew Gilleland.
“From affordability to electrification, our multi-path strategy continues to meet customers where they are and give them options that fit their lifestyles.”
Hyundai also saw an uptick in hybrid sales, which rose 35% during the quarter. Overall sales for the South Korean company, which also holds a large stake in Kia, came in at 483,555 vehicles, up 5.4% from the year-ago level.
