General Motors experienced a 5.5% decline in new vehicle sales during the third quarter of 2026, selling 670,974 vehicles compared to the previous year. The automaker’s electric vehicle sales have dropped significantly, with models like the Equinox EV, Blazer EV, and Hummer EV seeing steep declines of over 70%. This downturn comes after a surge last year when federal EV incentives were about to expire, which had boosted GM’s electric vehicle numbers to record highs.

In contrast, Toyota reported a modest 0.6% increase in third-quarter sales, moving 633,223 vehicles, driven largely by strong performance in its electrified vehicle segment. Toyota’s hybrids and electric vehicles accounted for over 57% of its sales, rising 28.5% year over year with 363,367 units sold. This growing strength in hybrid and electrified vehicles is helping Toyota to narrow its sales gap with GM in the U.S., with just under 136,000 units separating the two automakers after the quarter.

Other automakers also benefited from hybrid sales as consumers responded to high gas prices, with Honda reporting a 9.3% increase in U.S. sales for the quarter thanks to record hybrid sales of over 106,000 units. Meanwhile, GM’s reliance on gas-powered trucks and SUVs, sectors affected by rising fuel costs, contributed to a flat performance in its full-size pickup sales. However, GM’s lower-cost vehicles, such as the Chevrolet Trailblazer, showed growth, with the model rising 51% in the quarter.

Despite the sales drop, GM remains optimistic about its business prospects. Duncan Aldred, president of GM North America, highlighted that sales of traditional combustion-engine vehicles held steady year over year and emphasized the company's ongoing investments in new vehicle launches, technology, and U.S. manufacturing. GM is also pushing forward with new V-8 engine offerings for its full-size pickups as part of its strategy to maintain leadership in the truck segment amid a transitioning automotive market.