U.S. automaker General Motors Co. (GM, Financial) released its first-quarter China sales report on April 3.
The company reported weak auto sales in the world’s hottest car market due to the outbreak of the coronavirus.
The Detroit-based automaker delivered more than 461,700 vehicles in China, down 43.3% on a year-over-year basis.
How did the brands perform?
All of the company’s major brands failed to register sales growth in China, with the exception of Cadillac.This marked the seventh consecutive quarter of sales decline for the company.
Buick sales amounted to nearly 129,600 units. In March, customers started placing orders for the all-new GL8 Avenir luxury MPV family prior to its availability for purchase.
Chevrolet sales in China edged past 50,900 units in the first quarter, down 55% from the same period last year. In an effort to strengthen its SUV presence in China, the brand started accepting preorders for the Blazer SUV.
Baojun sales totalled 82,200 units in the first quarter.
Wuling sales came in at more than 172,200 units, which reflected a decline of 34.3%. Wuling was the best brand in China as compared to other brands in terms of volume sold.
Cadillac was the only brand to report sales growth. Cadillac deliveries came in at 26,800 units, up 40%. The brand will reinforced its foothold in the growing luxury market by virtue of launching the CT4 sedan later this month.
Key insights
Due to the Covid-19 pandemic, the government was forced to lock down parts of China in order to stop its spread. The travel restrictions hindered auto sales in the country. Auto sales were down 19% in January followed by a mammoth 79% decline in February.
General Motors is making use of innovative sales channel and techniques in order to reach out to customers and boost sales amid the lockdown. A few of these tactics include livestreaming and touch-free vehicle services, which were rolled out across all of company’s major brands.
Disclaimer: I do not hold any positions in the stocks mentioned.
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