EV demand low into early 2026 forces GM to reset its EV roadmap

GM

EV demand low into early 2026 is forcing GM to reset its electrification roadmap. The company now expects a sharp slowdown in US EV demand from October, with weakness extending into early 2026. As a result, GM EV strategy will focus less on volume and more on profitability, cost reduction and flexible product planning while EV demand low into early 2026 reshapes investment priorities.

EV demand low into early 2026 shifts focus from growth to profitability

GM is refocusing its EV portfolio on returns as EV demand low into early 2026 erodes earlier growth assumptions. Management will target lower material costs through larger battery modules and new chemistries, seeking better pack economics across upcoming models. This shift shows how GM EV strategy is moving from pure scale to margin protection in a cooling market.

However, the company still holds a meaningful EV position despite the slowdown. GM delivered more than 66,000 EVs in the US during the third quarter, capturing a 16.5pc market share. Even so, the $1.6bn charge tied to converting the Orion, Michigan plant back to internal combustion output signals a decisive retreat from some earlier EV capacity bets. GM will also end production of its BrightDrop electric delivery van after weaker than expected fleet demand.

Tariff exposure falls as GM doubles down on North American supply chains

Tariff relief and localisation are cushioning GM as EV demand low into early 2026 complicates planning. The company cut its 2025 tariff exposure by $500mn, now guiding to $3.5bn-4.5bn in potential duties. Recent tariff measures on some vehicle imports have had limited impact on GM because of years spent strengthening North American supply chains.

As a result, sourcing strategies have become a core pillar of GM EV strategy. Management highlighted investments in magnet supply and its stake in Lithium Americas as examples of upstream de-risking. These moves help secure critical materials for both EV and hybrid programs while limiting exposure to geopolitical shocks. Still, quarterly profit fell to $1.3bn from $3bn a year earlier, underlining how a softer EV ramp and restructuring costs weigh on near-term earnings.

The Metalnomist Commentary

GM’s reset shows that profitability is now the dominant theme in Western EV markets. For metals producers, slower EV growth into 2026 could delay some demand, but localisation of magnets, batteries and power electronics remains structurally bullish. Suppliers that can offer both competitive pricing and North American footprint will be best positioned as GM and peers rebalance their EV roadmaps.