General Motors (GM, Financial), in collaboration with its joint ventures in China, sold 858,344 vehicles in the second quarter of the year, up 0.7% from the same period last year. The company’s year-to-date sales surged 4.4% in the first half of the year as compared to the first quarter of prior year.
Passenger vehicle sales plunged during the second quarter. However, the company had an active market in China for Cadillac and Baojun brands. Here’s a detailed analysis of the company’s performance in China.
Bird’s-eye view
Chevrolet sales during the quarter inched up 22% to 131,895 units, thanks to huge sales of its best-selling Cavalier brand (approximately 49,000 units). Sales of the Malibu family, Chevy’s flagship sedan spiked 29% year over year to 29,000 units. Equinox also had a terrific run in China with quarterly sales amounting to more than 19,000 units.
Cadillac continued to impress with its marvelous numbers in China. The brand sold 48,712 units in the second quarter that reflects a 19% sales growth year on year. Sales of the midsize XT5 luxury SUV exceeded 17,000 units. While sales of CT6 sedan jumped 49% to more than 3,700 units, XTS luxury sedan sales soared 42% to roughly 14,000 units. Sales gain at all these models contributed a great deal to Cadillac’s quarterly growth.
Baojun sales totaled 198,986 units in the second quarter, up 6% from the same period last year. The sales gain was attributable to huge volume of sales of its top-seller Baojun 510 whose sales came in at more than 71,000 units. Baojun 510 is currently one of the most highly-demanded and lucrative SUVs in China. Sales of Baojun 310 family and Baojun 360 amounted to 38,000 unit and 13,000 units, respectively.
The surprise came when the company reported a decline in Buick sales in the second quarter. More often than not, Buick had dominated the China market. However, Buick sales plummeted 16% to 230,454 units. GL8 sales in the quarter were 37,000 powered by strong sales of the new-generation MPV. The company has just launched the all-new version of the “classic Excelle,” a reasonably-priced sedan, which could help the brand change its fortune in the second half of the year.
Wuling sales rose 3.1% in the quarter to 248,297 units. The Hong Guang MPV family deliveries amounted to almost 98,000 units.
General Motors vs. Ford: A contrasting story
It is interesting to see that while General Motors is tasting success in China, Ford (F, Financial) is still in search of ways to boost its sales in the mainland. China is the fastest-growing auto market in the world that calls for dynamism and flexibility in operations, something in which the Blue Oval stays behind. Dearth of new products has been the reason for Ford’s downfall in this Asian country.
General Motors has always been able to attract Chinese buyers with its ability to launch new cars frequently. While Excelle happens to be the latest launch, it promises a flurry of vehicles to come in the near future. At the end of the year, the company plans to introduce 10 new and rejuvenated models in China with most of them being SUVs and luxury cars.
Disclosure: I do not hold any position in the stocks mentioned in this article.
