GM China President Kevin Wales.
General Motors set a significant milestone, last month, becoming the first automaker to ever sell more than 2 million cars in China during a single year, and giving the brand a nudge forward in its hard-fought battle to dominate the growing Asian market.
While car sales have “slowed” in China, in recent months, the numbers are still increasing at a double-digit pace and GM, in particular, recorded a 19.6% bump. Falling just short of 200,000 vehicles, the month was an all-time record for the maker in what is now the single-largest national car market in the world.
“Over the past decade, China’s vehicle market has experienced unprecedented growth. GM has grown with it, working with our joint ventures to expand our lineup of vehicles and brands, adding to our portfolio of services, and increasing our production capacity to meet the changing needs of consumers nationwide,” proclaimed Kevin Wale, president of the GM China Group.
The latest numbers come as a reminder of the maker’s controversial decision to enter the then-nascent Chinese market, 13 years ago. Back then, few believed GM would be able to recover its initial investment in a new assembly plant to be built in the new, Pudon section of Shanghai.
As with other foreign makers hoping to tap China’s potential, GM was required to – and still must – partner with a domestic maker. The original deal paired it with Shanghai-based SAIC, and their SGM unit saw a nearly 45% increase in sales last month.
The original Buick line has been significantly expanded since the first line opened, and now GM sells a number of its global brands in China, including Cadillac, Chevy and Opel. Along with SAIC, it has partnered with Wuling to produce microvans and recently announced plans for a new line of entry-level small cars targeting buyers in central and western China, where the nation’s economic growth has until now been lagging.
Earlier this week, GM announced plans to expand its tie-up with SAIC, signing a non-binding Memorandum of Understanding, or MoU, to share advanced powertrain technologies, work to develop new vehicle platforms – and to jointly push into newer Asian markets, such as fast-growing India. (Click Here for the full story.)
SAIC, meanwhile, has expressed interest in investing in GM’s upcoming IPO, though a final decision has not been announced.
GM remains locked in a pitched battle for supremacy in the Chinese market, its chief rival Volkswagen AG. But analysts warn that home-grown competitors, including BYD, Geely, Chery and even SAIC would ultimately like to unseat the foreign leaders.