General Motors reported a 94% year-over-year increase in electric vehicle sales for the first quarter of 2025, delivering 31,612 EVs in the U.S. as the company gains ground in its bid to become the second-largest EV maker in the country. However, over half of those deliveriesâapproximately 58%âcome from models built in Mexico, which are set to incur a 25% import tariff beginning April 6.
The Chevrolet Equinox EV and Blazer EV, GMâs two most affordable and highest-volume electric vehicles, made up 10,329 and 6,187 sales respectively in Q1. Both are produced in Mexico and could face substantial price increasesâup to $8,750 on the base Equinox EVâonce the new tariffs are applied. The Cadillac Optiq, also built in Mexico, added another 1,716 units, bringing the total of Mexican-made EV sales to 18,232 units for the quarter.
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“GM isn’t alone here. The whole industry is reeling from these tariffs, and nobody knows what will happen yet,” the original report stated. Still, GMâs exposure is especially high, as the Mexican-built models accounted for the majority of its EV volume last quarter.
By contrast, GMâs U.S.-built electric lineupâcomprising the Cadillac Lyriq (4,300), Silverado EV (2,383), GMC Hummer EV (3,479), GMC Sierra EV (1,249), Cadillac Escalade IQ (1,956), and Chevrolet Bolt EV/EUV (13)âtotaled 13,380 units in Q1. While these vehicles are assembled in the U.S., federal filings show that only 36% of their parts value originates from the U.S. or Canada, making them partially vulnerable to tariff-related cost increases.
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The timing of the tariffs poses a fresh challenge just as GM appears to have overcome early production and software issues that hampered its EV rollout in 2024. Consumer demand has been bolstered by aggressive incentives, including heavily discounted leases. âMy car had a $52,000 sticker price, and my lease rate was still less than a Honda Civic,â one Blazer EV owner said, noting that some lease deals were under $5,000 for two years.
Looking forward, GM plans to launch a new U.S.-made Bolt EV this year and introduce lower-priced electric trucks. However, with tariffs set to impact both pricing and profitability, analysts warn the companyâs hard-won EV momentum may face significant headwinds. EV competitors like Tesla, Hyundai, and Volkswagenâwhose key models are produced in the U.S.âmay benefit from a pricing advantage as the market adjusts.