Lower demand for electric cars dents GM's sales

General Motors reported a dip in fourth-quarter US auto sales Monday, reflecting a sharp decline in electric vehicle transactions amid a broader slowing car market.

But the US auto giant also achieved an annual sales increase, pointing to growth in pickups and crossovers sales as evidence of resonance with consumers despite offering lower incentives than the industry average.

The Detroit giant reported 703,000 deliveries in the final quarter of 2025, a drop from the year prior of 6.9 percent, in a period characterized by tepid consumer confidence surveys.

Other carmakers to report a drop in US sales in the fourth quarter included Honda, Nissan and Volkswagen, while Toyota and Stellantis were higher.

Analysts at Cox Automotive had estimated a 4.7 percent drop in overall US car sales in the fourth quarter, with concerns about a weakening job market, high interest rates and cost-of-living pressures weighing on sentiment.

A driver of GM's decline was a pronounced fall in EV sales from the third quarter, when consumers raced to take advantage of a $7,500 tax credit that expired at the end of September, earlier than initially intended due to legislation championed by US President Donald Trump.

EV sales at GM were 25,219 in the October to December period, less than half the level in the third quarter of 2025.

GM's annual sales were 2.8 million, up 5.5 percent from 2024. Among the vehicles with sizable gains were the Chevrolet Equinox, a small "crossover" sport utility vehicle and the GMC Sierra line of pickup trucks.

"Demand for our brands and products is strong at every price point, and we are well-positioned to build on this momentum in the year ahead," said GM senior vice president Duncan Aldred.

At Toyota, fourth-quarter sales rose about eight percent to 652,195, in line with annual growth of comparable percentage. Total sales were 2.5 million for 2025.

Toyota models with significant year-over-year sales increases included the Grand Highlander SUV and Tacoma pickup.

Tariff effect?
Stellantis, meanwhile, scored a four percent increase in the fourth-quarter to 332,321, helping to reduce the size of its annual drop after a number of weak quarters.

Stellantis annual sales fell three percent to 1.3 million.

"With consecutive quarterly sales increases and market share growth, it's clear that we are taking the right steps to reset our business in the US," said Jeff Kommor, head of US retail sales, who pointed to five new vehicle launches scheduled for 2026.

Throughout 2025, automakers were faced with a fast-changing policy environment as Trump announced myriad tariff actions and moved to gut climate measures enacted under predecessor Joe Biden.

Tariff costs did not lead to significant hikes in retail prices in 2025, in part because dealers were selling autos from inventory.

However, analysts say consumers may see greater car price hikes in 2026 due to tariffs, potentially affecting demand.

Cox estimates that US sales will come in at 15.8 million in 2026, or 2.4 percent below its projection for 2025 sales.