General Motors recorded a 5.5% year-over-year decline in U.S. sales during the third quarter, delivering 670,974 new vehicles as demand for its electric models weakened.

The drop comes after a strong EV sales period last year, when buyers rushed to purchase electric vehicles ahead of the expiration of federal incentives of up to $7,500. With those incentives no longer available, the surge in EV demand has faded, contributing to lower sales across GM’s electric lineup.

Rising fuel prices could provide another challenge for the automaker. The national average gasoline price has reached $4.41 per gallon, potentially putting pressure on demand for the large trucks and SUVs that form a significant part of GM’s U.S. sales mix.

The broader U.S. market remains relatively resilient. Cox Automotive has increased its 2026 new-vehicle sales forecast by around 2% to 16.1 million units, indicating that GM’s decline is occurring against a market that is still expected to post growth.

GM could also face increasing competition in the hybrid market. Despite its extensive EV portfolio, the automaker currently has only one hybrid model, the Corvette E-Ray. With higher fuel costs potentially encouraging more consumers to consider hybrids, Toyota’s broader hybrid range could benefit.

The latest figures underline the changing dynamics of the U.S. car market, as EV demand adjusts following the end of federal incentives while hybrids become increasingly relevant to buyers facing higher fuel costs.