General Motors China sold 277,979 vehicles last month as sales rose 7.5 percent for the year. The strong April numbers, coming after a disappointing March, were driven in large part by strong SUV sales. GM China President Matt Tsien indicated that General Motors expects to launch additional SUVs designed for the Chinese market in the coming years. Overall SUV sales are up 107 percent since April 2015.
In addition to strong sales of SUVs, General Motors has seen great success as of late. General Motors Co, the biggest foreign automaker in China, said deliveries in the nation rose 15 percent last month, led by demand for its Wuling minivans. Deliveries of cars and minivans rose to 199,503 units in July, according to a statement on the automakers website. Sales at SAIC-GM-Wuling Automobile Co, the venture that makes Wuling mini-commercial vehicles, climbed 27 percent to 98,694 units last month, according to the statement. GM said on August 2 net income margins in China fell in the second quarter as a significant share of its sales growth came from less-profitable mini-commercial vehicles that include the Wuling minivan, whose retail price starts at 34,000 yuan (US$5,336). For the first seven months, GMs total sales to dealerships rose 12 percent to 1.62 million units.
They are increasing sales in the Chinese luxury car market. Led by Cadillac and especially Buick, which has come to be seen as a status symbol by upper class Chinese, GM’s luxury lineup has been designed especially for the Chinese market and has grown substantially in market share over the past several years. Buick sales have risen 56 percent this year while Cadillac, a relative newcomer to the Chinese market, has seen sales increase 13 percent on the year. The recent release of the Cadillac XT5 crossover boosted sales in the country and Cadillac division chief Johan de Nysschen has indicated that the Chinese market will be integral to Cadillac’s rebranding going forward. In the coming months General Motors plans to release 13 all new vehicles to help raise sales even further.
While GM has seen impressive sales figures this year on the back of successes in the SUV and luxury car markets, Chevrolet sales in China are down 29 percent last month. This may signal trouble for General Motors in competing in the small cars segment of the Chinese market where the company faces many more competitors.
Source: The Detroit News