Despite a record-setting performance in 2014, GM finished second to Volkswagen in China again.
With archrival Toyota beginning to retrench in the world’s largest market, General Motors and its joint ventures sold a record 3,539,970 vehicles in China in 2014, an average of one vehicle every nine seconds and almost 9,700 vehicles each day.
GM’s sales were up 12% from the previous high of 3,160,377 vehicles sold in 2013, but it wasn’t enough to pass market leader Volkswagen, which in 2013 emerged as the leading seller of new vehicles in China. Even Toyota’s sales were up 12.5%, but the company still finished a distant third behind VW and GM in 2014.
VW sales rose 18% to more than 1.8 million vehicles, the company said today. That compares with GM’s 1.73 million units, an 11% increase. In 2013, the German automaker outsold GM in China for the first time in nine years.
China is now the biggest market for both VW and GM and key to the three-way race with Toyota for leadership, at least in term of production and sales, in the global auto industry.
“GM performed well ahead of the overall industry in China, which was up an estimated 7.5% last year,” said GM Executive Vice President and President of GM China Matt Tsien. “We experienced especially strong growth in demand in the luxury segment as well as in the SUV and MPV segments,” said Tsien, who has said GM’s top management has been completely supportive of the company’s effort to grow in China.
Overall growth of the Chinese market is expected to slow in 2015 as the China’s economy cools down. After years of double-digit growth, China’s economy is expected to grow at “only” 7% this year, but the Reserve Bank of Australia, which keeps a sharp eye on economic developments in China, recently noted China’s economy has demonstrated a great deal of resilience.
The slow down in China’s growth, however, has taken a toll on indigenous Chinese brands and some foreign companies.
Toyota, which is also facing competitive pressure in China from brands such as Ford and Hyundai, confirmed recently it will fall short of its 2014 sales target of 1.1 million units with 1.03 million vehicles sold and also face the possibility of defections among dealers and distributors, who claim they are losing money.
GM reported domestic sales by Shanghai GM rose 13.1% last year to a record 1,710,025 units. SAIC-GM-Wuling sold 1,787,931 units in China, an increase of 12.8% and an all-time high as well. FAW-GM’s domestic sales were down 29.4% to 41,702 units.
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Buick sales in China increased 13.5% on an annual basis to a record 919,518 units. Chevrolet likewise set a record for domestic sales, as demand increased 10.0% from 2013 to 717,007 units. Its most popular nameplate was the Cruze, which had sales growth of 7.7% to 265,993 units.
Cadillac sales in China were up 47.0% from 2013 to a record 73,500 units. The XTS experienced record sales of 31,960 units, which was up 59.0% from the previous year. In addition, sales of the SRX reached 27,484 units, and sales of the ATS and ATS-L totaled 13,276 units. GM is counting on the Chinese market to fuel Cadillac’s comeback as a global brand.
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Wuling sales in the domestic market rose 8.4% year on year to 1,608,571 units, which was also a new annual high. Baojun had sales of 179,360 units, an increase of 78.5% from 2013 and a new high for the brand.
During December, GM and its joint ventures sold an all-time monthly record 357,375 vehicles in the domestic market, an increase of 31.9% on an annual basis. Shanghai GM’s domestic sales increased 51.8% to 191,181 units, while SAIC-GM-Wuling’s sales in China were up 18.9% to 164,258 units. Both were December records. FAW-GM’s sales were down 70.6% to 1,936 units.
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In 2014, GM and its joint ventures expanded their lineup with several new and refreshed models in China, including the Buick Envision premium midsize SUV, Chevrolet Trax urban SUV and Sail 3 family car, Cadillac ATS-L luxury sport sedan, and Baojun 730 family vehicle.