GMC, the renowned automobile brand, has achieved remarkable success in the United States with a notable increase in vehicle deliveries during the second quarter of 2023. The company reported an impressive figure of 156,005 vehicles delivered, marking an 18 percent surge compared to the previous year. Furthermore, the year-to-date sales result stands at 286,613, showing a positive growth rate of 13 percent year-over-year.
However, despite the overall success, GMC has encountered obstacles hindering the production and sales of its highly anticipated all-electric GMC Hummer EV Pickup and SUV models.
During Q2, only 47 electric Hummer vehicles were delivered to customers, reflecting a substantial decline of nearly 83 percent compared to the same period last year, which saw 272 deliveries. Although this signifies an improvement from the mere two units delivered in Q1, it is evident that all-electric vehicle sales remain a marginal fraction of GMC’s overall sales, despite a significant number of customers eagerly awaiting their electric vehicles.
Specifically addressing GMC’s BEV sales in Q2 2023, the Hummer EV Pickup achieved sales of 47 units, representing an 83 percent decrease, with a negligible market share.
The cumulative sales of GMC’s all-electric vehicles in the year thus far amount to a mere 49 units. This figure is significantly lower compared to the previous year’s sales of 371 units during the first half of 2022.
The persistently low sales volume of the GMC Hummer EV Pickup raises concerns regarding the underlying reasons for this setback. Over the past seven quarters, the company has struggled to surpass the 900-unit mark, falling short of the desired numbers.
One contributing factor to the challenges faced by GMC in late 2022 and early 2023 was a production pause at the Factory ZERO in Michigan. This pause was necessary to accommodate preparations for the production of another Ultium-based model, the Chevrolet Silverado EV.
While limited battery supply and potential ramp-up issues of the Ultium platform, as observed with the Cadillac Lyriq, could also be factors affecting sales, it is essential to consider multiple variables contributing to the current situation.
Notably, reservations for the GMC Hummer EV Pickup and SUV models were closed in September 2022, with an impressive 90,000 units reserved, each backed by a $100 refundable deposit. By October 2022, it was announced that the Hummer EV duo had sold out for the next two years.
To effectively address the overwhelming demand, production of the Hummer EV duo should ideally reach a range of 5,000 to 10,000 units per quarter. Meeting this target will not only satisfy customer expectations but also allow GMC to capitalize on the immense potential of the all-electric vehicle market.
