General Motors Reports 14.1% Increase in U.S. Vehicle Sales in 2023
General Motors (GM) experienced a 14.1% increase in U.S. vehicle sales last year, marking its best year since 2019. Despite the challenges posed by the Covid-19 pandemic and supply chain issues, GM sold approximately 2.6 million vehicles in 2023, including 625,176 cars and trucks in the fourth quarter. This figure remained relatively flat compared to the previous year. In 2022, GM sold about 2.3 million vehicles, while in 2019, it sold 2.9 million units.
Industry Sales Expectations
GM’s sales align with industry expectations for overall sales growth. Edmunds predicts that industrywide sales will reach 15.5 million in 2023, representing a 14% increase from the previous year.
Outlook for 2024
GM anticipates total U.S. industry sales to reach 16 million in 2024, which would be the highest since 2019. This projection aligns with the upper end of industry analyst forecasts. Marissa West, GM’s senior vice president and president of North America, expressed confidence in the company’s momentum and highlighted its market share growth, strong pricing, and low incentives.
Brand Performance
GM’s annual sales increase was driven by a 61% surge in its Buick brand, followed by a 13.1% increase for Chevrolet. Sales for GMC and Cadillac also saw growth, with approximately 9% increases each in 2023.
Electric Vehicle Sales and Plans
Although GM’s overall sales performed well, its sales of electric vehicles (EVs) were disappointing in 2023. The company sold a total of 75,883 EVs, accounting for only 2.9% of its overall sales. Most of these sales were Chevrolet Bolt models, which have since been discontinued. GM faced production challenges for its newer “Ultium” EVs, including issues with battery module assembly.
To boost EV sales in 2024, GM plans to increase production and offer $7,500 in incentives on models that no longer qualify for federal tax credits due to stricter requirements for assembly and materials. The company is committed to the future of EVs and will provide the equivalent EV tax credit purchase amount for any vehicles that became ineligible due to the new guidelines.
Overall, GM’s strong sales performance in 2023 sets a positive trajectory for the company as it aims to capitalize on market opportunities and overcome challenges in the automotive industry.
