Detroit-based automaker General Motors (GM, Financial), in collaboration with its joint ventures in China, witnessed 11.9% sales growth in August year over year to a record 328,425 vehicles.
On a year-to-date basis, the company sold 2.38 million vehicles, which represents a growth of 0.3% compared with the same period last year. As of this month, retail sales surged an astounding 12% while GM’s brands such as Buick, Cadillac and Baojun registered their best-ever August sales figures.
Besides General Motors, other automakers such as Honda Motors (HMC, Financial) and Toyota (TM, Financial) reported strong August volumes in China. Honda sold a total of 128,671 vehicles (up 20.6% year over year) and Toyota delivered 108,500 units (up 13.2%).
Here’s a look at General Motors’ monthly performance in China.
General Motors continues its dominance in China
Buick sales surged 9.6% to 103,277 vehicles. Buick GL8 MPV sales skyrocketed 125% due to impressive performances of the new generation GL8 and GL8 Avenir. The company announced its intension to expand its MPV portfolio by launching GL6 later this year. While sales of LaCrosse rose 41% to more than 8,100 units, Envision sales surpassed 15,000 units. Sales of Excelle GT sedan, the company’s top model, increased to more than 40,000 units.
Cadillac continues to dominate the Chinese market with sales soaring 37.1% to roughly 12,000 units in August. This month marks the brand’s 17th successive month of double-digit sales growth. Several models contributed to the brand’s success. Cadillac XT5 sales totaled nearly 5,400 units, which represents a 73% sales growth as compared with August 2016. Cadillac ATS-L sales climbed 63% to more than 5,200 units. Cadillac CT6 sales improved a mammoth 81% on a year-over-year basis.
Vice President and General Director of SAIC-GM’s Cadillac Division Andreas Schaaf commented, “Cadillac’s strong lineup, unique brand philosophy and premium customer experience are taking it to the next level of competition in China’s luxury vehicle market.” He added, “Our goal is for Cadillac to become a top-tier player.”
Chevrolet deliveries came in at 40,705 vehicles, up 20.7% year over year. The sales gain was attributable to remarkable sales of Malibu and Cavalier, whose sales totaled more than 10,000 units and 15,000 units. Sales of the brand’s best-selling SUV Equinox went past 4,600 units in its fourth full month in China.
Baojun sales grew 62% to 82,658 units. The sales growth was attributable to impressive sales of Baojun 510 SUVs and Baojun 310 wagons, whose sales totaled 33,000 units and 12,000 units. Deliveries of Baojun 310 sedans were approximately 6,500 units. Baojun’s sales rose on the backs of all these. In contrast, Wuling sales plummeted 18.9% on a year-over-year basis to 80,771 vehicles sold. With over 34,000 units sold, Wuling Hong Guang was the most popular Wuling model.
Last word
General Motors has tasted success over the past few months in China despite the lackluster start to the year. Based on the company’s continuous improved performance in China, it plans to launch 10 fresh and rejuvenated models in the second half of this year. Those will comprise the new Buick Regal, Baojun 310 wagon and Wuling Hong Guang S3 SUV. The highlight for this month remained the high-margin and profitable SUVs soaring a staggering 57%.
August was a good month, showing the benefits of having a good mix of product line. General Motors is gradually taking over the homegrown Chinese players together with other foreign competitors to emerge stronger and cement its dominance in the mainland.
Disclosure: I do not hold any position in the stocks mentioned in this article.
