General Motors Lowers 2024 Electric Vehicle Production Target
TapTechNews June 12th news, according to General Motors' chief financial officer, Paul Jacobson, the company has lowered its expected electric vehicle production for 2024 to between 200,000 and 250,000 units, down from the previous range of 200,000 to 300,000 units, equivalent to a 50,000-unit reduction in the target ceiling.
However, considering General Motors' historical performance, the range of 200,000 to 250,000 still performs quite well and will still see a significant increase compared to the past few years.
In 2023, General Motors' core brand sold 75,883 electric vehicles in the US (with fewer sales in other markets). In the first quarter of this year, the US market sales were 16,425 units (down 20.5% year-on-year). Even if the sales reach 150,000 units this year, General Motors' year-on-year increase can still reach 100%. Considering that the bestselling Chevrolet Bolt last year has been discontinued, this achievement is particularly impressive.
In May, General Motors sold more than 9,500 electric vehicles in the North American market. In the future, General Motors may sell more than 30,000 or even more than 50,000 electric vehicles per quarter. This is undoubtedly a huge progress for General Motors which has never exceeded 21,000 units in a single quarter.
The reason why General Motors lowered the sales target of electric vehicles lies in concerns about demand and a slower-than-expected growth rate in the electric vehicle market. It is learned that many automotive brands expect the sales of electric vehicles in 2024 to remain basically flat.
Jacobson said that General Motors expects electric vehicles to account for 8% of US electric vehicle sales, and some other manufacturers seem to be targeting 10% (TapTechNews note: except for Tesla, which controls about half of the electric vehicle market share in the US).
Another important piece of information is that General Motors has set a goal to achieve profitability in electric vehicles when the production reaches 200,000 units. According to Jacobson, this goal is expected to be achieved in the fourth quarter of 2024.