GMC anticipates surpassing its electric truck rivals with the launch of its new Sierra pickup.

• As it introduces its new electric Sierra pickup, GM's GMC brand aims to become the top seller of all-electric trucks in the US market.
• GMC's electric "truck" lineup now includes the Sierra EV, alongside electric versions of the Hummer SUV and pickup.
• To reach the top, the new Sierra EV must outsell the Chevrolet Silverado EV, as well as competitors from Ford Motor, Rivian Automotive, and Tesla.

The new electric Sierra pickup by GMC aims to make it the top all-electric truck seller in the US market.

GMC's electric "truck" lineup now includes the Sierra EV, which is expected to become the top seller for the automaker's EV lineup as lower-priced variants become available next year. The roughly $100,000 "Edition 1" of the vehicle has already started reaching customers.

According to Duncan Aldred, global vice president of GMC, the proposition being launched is completely different from anything that has been introduced by anyone else before, which makes them confident about the demand. This was stated at GM's proving grounds in suburban Detroit.

GMC did not reveal a timeline for when it plans to become the leading retail electric truck seller. However, to achieve this, it must surpass its sister brand Chevrolet Silverado EV and outperform competitors such as Tesla, Rivian, and Ford, according to Motor Intelligence's report on second-quarter sales.

Although Aldred believes that there may be cross-shopping between the Sierra and Cybertruck, he does not consider them primary competitors, despite their similar pricing. According to internal data, many Cybertruck buyers already own Teslas, while approximately 80% of GMC's Sierra reservation holders previously owned non-GMC vehicles.

"During a media event, he stated that 70% of Cybertruck buyers are Tesla owners. Therefore, they are not necessarily truck buyers, but Tesla owners."

Developing market

The release of all-electric pickup trucks by automakers such as GM was prompted by Tesla's plans to build such a vehicle. This move led to concerns that the U.S. EV leader would dominate the truck market, which is vital to the success of Detroit automakers, as it has been for electric cars.

Despite expectations, the adoption of electric vehicles has been slower, and the electric truck market is still in its early stages.

In the first half of the year, the all-electric pickup truck market was approximately 38,500 vehicles, including both retail and fleet sales, according to Motor Intelligence. This is in comparison to the more than 1 million traditional or hybrid full-size pickup trucks sold this year through June.

In June, Ford's F-150 Lightning led all-electric pickup truck sales with 15,645 vehicles, while the Tesla Cybertruck came in second with nearly 11,600 units, including a segment-leading 8,755 during the second quarter, according to Motor Intelligence.

According to Motor Intelligence, GMC's Hummer pickup, which has struggled with slow production and sales, sold less than 1,500 vehicles in total, including approximately 1,100 during the second quarter.

""The market for electric trucks is still in its infancy, with General Motors having confidence in their ability to lead due to their history with trucks and their understanding of transitioning to electric vehicles. However, the real challenge lies in how quickly consumers will adopt electric trucks, rather than the product attributes," said Stephanie Brinley, principal automotive analyst at S&P Global Mobility."

Rivian has sold more than 22,700 R1S SUV and R1T pickups in the first half of the year, surpassing GMC's Hummer SUV and pickup models, which sold roughly 4,600 units.

The Sierra EV, including the AT4 off-road and entry-level Elevation models, is expected to be ramped up faster than the Hummer models, which took years, according to Aldred. Denali versions of the vehicle are expected to begin production in the fourth quarter, GM announced.

GM's third electric pickup, the Hummer and a new Chevrolet Silverado, began arriving in dealerships in December, in addition to the Sierra EV.

Chevy vs. GMC

The Chevy Silverado EV is the closest competitor to the Sierra EV, both being built on GM's "Ultium" platform and sharing numerous parts, features, and performance traits.

The Detroit automaker distinguishes its vehicles through unique interior and exterior designs, as well as distinct brand identities.

Aldred stated that while Chevrolet concentrated on the fleet side, the company is now focusing on the retail side, similar to its approach to internal combustion engine trucks. He added that the electric vehicle (EV) truck market is a premium space.

The Silverado offers a sporty, high-end edition priced at approximately $96,500 and a work truck designed for commercial and fleet customers, which starts at around $67,000.

The GMC Sierra is more refined and luxurious than the Chevrolet version, featuring open pore wood, larger screens, standard hands-free highway Super Cruise driving, GMC's "crab mode" with four-wheel steering, and other advanced features.

"S&P Global's Brinley commended General Motors for effectively differentiating between GMC and Chevrolet, particularly with the GMC Sierra and Chevrolet Silverado EVs. The two models are visually distinct, and General Motors has successfully catered to the unique needs of each customer segment for decades. The company understands how to create an appeal that resonates with GMC buyers versus Chevrolet buyers, and does so in a subtle manner."

Both vehicles have an EPA-rated range of 440 miles and offer up to 754 horsepower and 785 pound-feet of torque. They also tow up to 10,000 pounds and can charge for 100 miles in roughly 10 minutes with a DC Fast Charger.

Unlike other vehicles, the Silverado and Sierra EVs have a "midgate" feature that allows the back seats to fold down and the back glass to be removed, resulting in a nearly 11-foot-long truck bed and a spacious cargo area.

Building on the GMC brand

GMC's Sierra EV, including the Denali edition, is predicted to maintain its pricing power and reputation as a premium truck brand, as stated by Patrick Finnegan, senior marketing manager for GMC trucks and SUVs.

GMC's average transaction prices and high-end models have increased due to the newer off-road AT4 vehicles and Denali, which is marking its 25th anniversary as a GMC sub-brand.

The average transaction price of GMC's traditional Sierra pickup truck is approximately $60,000, with Denali models costing around $71,000 and a "Ultimate" Denali model priced at $78,500, according to the company.

The electric GMC Sierra Denali, AT4, and Elevation models, following the 2,500-unit "Edition 1" models, have not been priced by GM. However, Aldred stated that the Sierra could be eligible for up to $7,500 federal tax credits, meaning it would cost less than $80,000.

From basic modifications that distinguished them from other vehicles, Denali models have evolved to include their own unique interiors, parts, and features. Although they still share the same underlying structure, they now offer a more luxurious experience with premium materials.

GMC's retail sales have increased by 34% in the past decade, with Denali models accounting for 34% of the brand's sales in 2021, up from 18% in 2011 and 30% in 2019. This growth has helped GMC achieve seven consecutive years of growth.

""We will continue to protect our premium average transaction price space and open the door to new customers by being the retail leader in the electric vehicle truck space with a fuller breadth of product," Finnegan stated."