General Motors (GM) is revising downwards its production targets for all-electric models. This was confirmed to CNBC this week by GM CEO Mary Barra.

　　The automaker had set a target to produce one million electric vehicles a year, starting at the end of next year. Barra told CNBC that the level of customer demand will be what dictates how quickly the company reaches its goal of producing a million EVs annually. She noted that, at the moment, demand is not sufficient to achieve that goal.

　　We wont get to a million just because the markets not developing, but it will get there.

　　Mary Barra, CEO of General Motors

　　Last December, Barra stated that the governments goal of banning the sale of gasoline-powered vehicles by 2035 would hinge in large part on consumer acceptance.

　　To be clear, the industry is dealing with a slowdown in demand for new electric vehicles, not with declining sales. Since the beginning of the year, sales of EVs have continued to climb in both the U.S. and in Canada. Its sales growth that isnt as strong as expected, forcing some manufacturers, like GM, to revise their targets.

　　This slowdown in growth could hurt GM, which recently overcame battery production problems and has already delayed the opening of a plant in the Detroit area destined to build electric pickup trucks. The carmaker is currently focusing on ramping up production of its Chevrolet Blazer EV and Chevrolet Equinox EV electric SUVs.

　　GM has two Ultium battery manufacturing plants up and running, while a third is due to come on stream in the fall. Thats something to keep an eye on, as GM will likely pace production to match demand levels.

　　As we often say, the electric transition will happen, but it will have its ups and downs.