General Motors Co. (GM) has announced a robust start to 2025, reporting a 17% increase in U.S. sales during the first quarter, driven by strong demand for its trucks, SUVs, and electric vehicles. The automaker delivered 693,363 vehicles from January to March, outpacing its competitors and marking a significant growth trajectory.
Despite this positive momentum, GM faces potential challenges ahead, particularly with the looming 25% tariffs on imported vehicles and major parts, set to be enforced on April 3, 2025. This tariff could significantly impact GM, as the company imports hundreds of thousands of vehicles from countries including South Korea, China, Mexico, and Canada.
Rory Harvey, GM’s executive vice president and president of global markets, expressed confidence in the company’s performance, stating, “GM’s sales growth outpaced every other major automaker, and the driving force is our portfolio. We're the industry leader in trucks and affordable small SUVs, Cadillac is growing significantly in luxury, and we have the broadest portfolio of EVs in the industry.”
One silver lining for GM is that many of its imported vehicles may not face immediate tariff impacts. Vehicles compliant with the United States-Mexico-Canada Agreement (USMCA) will remain duty-free until new processes are established to exclude only the value of U.S. content. According to the latest figures from the U.S. Trade Representative, 92% of vehicles imported from Canada and Mexico are compliant. This includes popular GM models such as the Chevrolet Silverado and the Blazer and Equinox SUVs.
All four GM brands experienced sales increases in the first quarter. Buick sales surged by 39%, Cadillac saw an 18% rise, Chevrolet grew by 14%, and GMC increased by 18%. Retail sales overall grew by 15%, marking the best first quarter since 2018. Additionally, GM Envolve commercial fleet sales rose by 25% during the same period, showcasing the company's expanding market presence.
Electric vehicle (EV) sales were particularly noteworthy, skyrocketing by 94% compared to the previous year. Chevrolet had its best first quarter since 2019, despite a slight dip in Silverado pickup sales, which fell by 0.2%. The all-electric Silverado EV, however, saw a remarkable 125% increase in sales. The Blazer EV experienced a more than tenfold increase in sales, although the gas-powered model faced a 13% decline.
Sales of the Equinox EV surpassed 10,000 units, while the gas-powered version of the Equinox grew by 31%, marking its best first quarter since 2020. Other models also performed strongly: the Suburban grew by 40%, the Tahoe rose by 28% for its best Q1 since 2007, and the Trailblazer increased by 21%. The Traverse saw a remarkable 62% increase, achieving its best-ever first quarter, while the Trax rose by 57%.
Cadillac's retail sales increased by 21%, with its EVs up by 37%, following the launch of the Escalade IQ and Optiq SUVs, both of which are nearing 2,000 sales. However, sales of the all-electric Lyriq fell by 26% during the same period. Traditional gas-powered models like the Escalade saw a 39% increase, marking its best first quarter ever.
GMC also reported impressive results, achieving its best first quarter ever. Sierra truck sales rose by 15%, including sales of the EV model, while Hummer EV pickups and SUVs more than doubled. The Yukon saw a 30% increase, marking its best first quarter since 2005, although Terrain sales fell by 27%. The Acadia saw a substantial growth of 73%, while the Canyon midsize truck had its best first quarter, up 66%.
Buick also had a standout quarter, with sales up significantly. The Enclave rose by 37%, marking its best first quarter since 2019, while the Envision increased by 17%. The Envista saw a 54% rise for its best quarter, and the Encore GX had its best performance ever, up by 53%.
As GM navigates this landscape of rising sales amidst impending tariffs, the company remains focused on leveraging its diverse portfolio to maintain its competitive edge in the automotive market. The combination of strong consumer demand and strategic positioning could help GM weather the challenges ahead, particularly as it continues to innovate in the electric vehicle space.
In summary, GM's strong performance in the first quarter of 2025 highlights its resilience and adaptability in a rapidly changing market, even as it braces for potential tariff impacts.
