GM's China operations sold their 2 millionth vehicle during 2014 last month. It marks the five straight years they've hit that mark.
General Motors and Ford continued to roll up record sales in China last month where both companies are continuing to expand their presence in what has become the world’s largest automotive market.
GM reported its joint ventures in China set a new domestic sales record for July, by selling nearly 250,000 as demand increased 12.7% from the same month in 2013. In addition, GM has now sold more than 2 million vehicle in China, marking the fifth consecutive year and the earliest ever that GM has reached the milestone.
Ford China sales grew by 25% in July with 90,775 vehicles sold, compared with 72,834 sold in July 2013. Steady customer demand for Ford’s global nameplates pushed year-to-date sales to 640,031 vehicles, up 33% from 480,555 sold during the same period last year and putting the company in striking distance of selling more than 1 million vehicles in China for the first time.
Ford Chief Executive Officer Mark Fields recently noted that the Chinese economy generally has been stronger than most Western analysts predicted at the beginning of the year. Both Ford and GM have plans to expand their line-ups in China.
“We will continue to expand our portfolio and introduce more product offerings in China to meet increasingly diverse demand in our largest market,” said GM Executive Vice President and GM China President Matt Tsien.
During July, Shanghai GM and SAIC-GM-Wuling as well as their Buick, Chevrolet, Cadillac and Wuling brands reached new highs for July sales. Shanghai GM’s domestic sales rose 6.6% from July 2013 to 120,734 units. SAIC-GM-Wuling sold 125,895 vehicles in China, an increase of 20.3% year on year.
Buick’s domestic sales rose 1% on an annual basis to 66,858 units while Chevrolet sales in China were up 10.9% on an annual basis to 48,046 units while Cadillac sales increased 58.1%. Wuling sales in China last month rose 25 % year on year to 122,995 units.
Overall GM’s strong performance in July took its sales for the first seven months up 10.7% on an annual basis. GM has 10 joint ventures, two wholly owned foreign enterprises and more than 58,000 employees in China.
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Ford remains on track to bring 15 new vehicles to China by the end of 2015 as part of its accelerated China growth plan. To keep up with local demand, Ford currently operates seven manufacturing plants in China, with three additional plants currently under construction.
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Strong monthly performance in July drove up Ford’s passenger car sales by 36% while sales of Ford SUVs, the Ford Kuga and Ford EcoSport, rose last month, contributing to healthy sales growth. Ford Kuga July sales jumped 10% with 10,450 vehicles sold while Ford EcoSport July sales increased 22% with 7,302 vehicles sold. Year-to-date sales for the two SUV nameplates have risen 63% and 83% respectively.
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Steady customer demand for the Ford Mondeo nameplate also helped drive CAF sales last month. The Ford Mondeo nameplate, which sets the bar for smart technology and refinement, sold 10,154 vehicles in July, an 807% increase from July 2013. Year-to-date sales have hit 69,880 vehicles, up 151 % from the same period last year.
Ford’s commercial vehicle investment in China, Jiangling Motors Corp. sold 22,031 vehicles in July, up 33% from July 2013 and sales for the multi-purpose Ford Transit increased by 11% from last July while year-to-date sales are up 5%.