General Motors’ premium GMC brand is aiming to become the leader in all-electric truck sales for U.S. consumers with the launch of its new electric Sierra pickup. The Sierra EV, along with electric versions of the Hummer, has joined GMC’s electric “truck” lineup. GMC believes that the Sierra will become its top-selling EV as lower-priced variants become available next year. The automaker recently started delivering the roughly $100,000 “Edition 1” of the vehicle to customers. Duncan Aldred, global vice president of GMC, expressed confidence in the demand for the Sierra, stating that it offers a unique proposition compared to other electric trucks on the market.
To achieve its goal of leading retail electric truck sales, GMC will have to outsell competitors such as the Chevrolet Silverado EV, Ford Motor, Rivian Automotive, and Tesla, which currently leads electric truck sales with its Cybertruck, according to Motor Intelligence. Aldred acknowledged that there may be cross-shopping between the Sierra and Cybertruck, but he believes they are not direct competitors. He cited internal data showing that many Cybertruck buyers already own Teslas, while around 80% of GMC’s reservation holders for the Sierra previously owned non-GMC vehicles.
The electric truck market is still in its infancy, with sales of all-electric pickup trucks reaching around 38,500 vehicles in the first half of the year, compared to over 1 million traditional or hybrid full-size pickups sold during the same period. Ford’s F-150 Lightning led all-electric pickup truck sales in the first half of the year, followed by the Tesla Cybertruck. GMC’s Hummer pickup, which has faced production and sales challenges, lagged behind in sales.
Stephanie Brinley, principal automotive analyst at S&P Global Mobility, referred to the electric truck market as an “infant market” and emphasized the importance of consumer adoption. Despite the slow growth, General Motors has confidence in its ability to be a leader in the space, given its history with trucks and understanding of transitioning to electric vehicles.
The Sierra EV, built on GM’s “Ultium” vehicle platform, shares many parts, features, and performance characteristics with the Chevrolet Silverado EV. However, GMC has differentiated the vehicles through their interior and exterior designs, as well as brand personalities. Aldred explained that Chevrolet focused more on the fleet side, while GMC is targeting the retail side. The Sierra EV is positioned as a premium offering with refined and luxurious features, such as open pore wood, larger screens, standard hands-free highway Super Cruise driving, and GMC’s “crab mode” with four-wheel steering.
Both the Sierra EV and Silverado EV have an EPA-rated range of 440 miles, offer high horsepower and torque, and have towing capabilities of up to 10,000 pounds. They also boast a unique feature called a “midgate,” which allows the back seats to fold down and the back glass to come out, creating a nearly 11-foot-long truck bed and large cargo area.
GMC expects the Sierra EV, including the Denali edition, to strengthen its pricing power and reputation as a premium truck brand. The Denali models have contributed to GMC’s average transaction prices and high-end models, with the traditional Sierra pickup truck having an average transaction price of around $60,000. Denali models make up about 34% of GMC’s retail sales, up from 18% a decade ago.
GM has not released pricing for the electric GMC Sierra Denali, AT4, and Elevation models that will follow the initial “Edition 1” models. However, Aldred mentioned that the Sierra could potentially be eligible for up to $7,500 federal tax credits, bringing the price below $80,000. GMC sees the Sierra EV as a way to protect its position in the premium average transaction price space and attract new customers. The brand aims to be the retail leader in the electric vehicle truck space and believes its fuller range of electric truck offerings will help achieve that goal.
