General Motors, once the dominant automaker in China, has seen its sales in the world’s largest car market plummet by almost 50% in the past four years. The company sold 2.1 million vehicles in China in 2023, down from 4 million in 2017, according to its own data. This decline reflects the changing preferences of Chinese consumers, who are increasingly opting for local brands and electric vehicles.
One of the main reasons for GM’s sales slump in China is the fierce competition from domestic automakers, who have improved their quality, design, and technology in recent years. Brands such as Geely, Great Wall, BYD, and Nio have gained market share at the expense of foreign players, especially in the fast-growing segments of SUVs and EVs.
According to the China Automobile Dealers Association, Chinese brands accounted for 36% of all new vehicle sales in 2023, up from 26% in 2017. In contrast, GM’s market share fell from 14% to 8% in the same period. GM’s joint venture partners, SAIC and Wuling, also suffered from the increased competition, as their sales remained flat or declined in 2023.
GM Struggles to Keep Up with the EV Boom
Another factor that has hurt GM’s performance in China is the rapid growth of the electric vehicle market, which is driven by government policies, consumer demand, and environmental awareness. China is the world’s largest EV market, with 6.7 million units sold in 2023, up from 1.2 million in 2017, according to the China Association of Automobile Manufacturers.
GM has been slow to adapt to this trend, as its EV offerings in China have been limited and outdated. The company only sold 760,000 electrified vehicles in China in 2023, accounting for 26% of its total sales. Most of these were plug-in hybrids or low-cost mini EVs, such as the Wuling Hong Guang Mini EV, which sells for less than $5,000. GM’s flagship EV brand, Chevrolet, only sold 169,000 units in China in 2023, down 16% from 2022.
GM Plans to Revive Its Sales with New Products and Strategies
Despite the challenges, GM is not giving up on China, which is still its second-largest market after the U.S. The company has announced several plans to revive its sales and regain its competitiveness in the country. These include:
- Introducing eight new electrified products in the next two years, including battery electric vehicles based on GM’s Ultium platform and plug-in hybrids. GM aims to increase its EV sales in China to 1.3 million units by 2025, representing 40% of its total sales.
- Launching new models and variants of its core brands, such as Buick, Cadillac, and Chevrolet, to cater to different customer segments and preferences. GM will also bring its large SUVs, such as the Chevrolet Tahoe and GMC Yukon Denali, to China for the first time, targeting the growing number of outdoor enthusiasts.
- Enhancing its digital and online capabilities, such as offering online sales, delivery, and service, as well as developing smart and connected features for its vehicles. GM will also leverage its partnerships with tech giants, such as Alibaba, Tencent, and Huawei, to improve its customer experience and innovation.
GM hopes that these initiatives will help it regain its momentum and reputation in China, where it has been operating for more than two decades. However, the company faces an uphill battle, as the competition is intensifying and the market is evolving rapidly. GM will need to prove that it can offer products and services that meet the needs and expectations of Chinese consumers, who are becoming more discerning and demanding than ever.
