The clean vehicle tax credit is set to expire on September 30 and that looming deadline has kept dealers busy. In fact, GM said “U.S. electric vehicle sales likely set an all-time monthly record in August” as consumers made a mad dash to buy an EV before the incentive expires.

Thanks to the rush, GM sold more than 21,000 EVs in August to set a new monthly record. While the automaker didn’t release hard numbers, they reported strong demand for the affordable Chevrolet Equinox EV as well as the upscale Cadillac Lyriq and GMC Sierra EV.

More: IRS Quietly Extends EV Tax Credit Deadline But There’s A Catch

General Motors went on to say they’re the second best-selling EV company in America and they’re expecting a busy September as well. What happens next is the big mystery, but sales are expected to collapse.

GM North America President Duncan Aldred said, “There’s no doubt we’ll see lower EV sales next quarter after tax credits end September 30, and it may take several months for the market to normalize.” He went on to say “we will almost certainly see a smaller EV market” and the company will respond by cutting production. Despite this grim outlook, Aldred believes they can still grow their electric vehicle market share.

As he explained, before the Inflation Reduction Act was passed, the strongest EV segments were for luxury and affordable vehicles. GM has these bases covered with Cadillac as well as the Equinox EV and reborn Chevrolet Bolt.

The automaker added, “We are seeing marginal competitors dramatically scale back their products and plans, which should end much of the overproduction and irrational discounts we’ve seen in the marketplace.” GM also noted their ICE-powered lineup will “continue to separate our brands from the pack and give us flexibility and profitability that EV-only companies lack.”

Baldauf