General Motors Surpasses Combustion Engine Sales with Electrified Vehicles in China—but There’s a Twist. For the first time since entering the Chinese market in 1997, General Motors (GM) has sold more electric vehicles (EVs) than traditional combustion engine cars in the third quarter of 2024. However, this shift isn't driven by the success of GM's flagship brands like Buick, Cadillac, or Chevrolet.
GM's Strategic Shift Towards Electric Vehicles in China
Amidst changing market dynamics, GM has adjusted its approach to electric vehicles in China. In Q3 2024, GM achieved a milestone by selling more EVs than traditional cars. Steve Hill, President of GM China, highlighted this progress, stating, “We are creating momentum in terms of sales volume and market share in China.”
In this period, GM sold 426,000 vehicles in China, marking a 14% increase compared to the previous quarter. Yet, the figure reflects a 21% decrease compared to the same quarter in 2023. This decline reveals a challenging landscape for GM and other foreign automakers in China.
The Decline of Buick, Cadillac, and Chevrolet
A closer look at GM’s sales breakdown uncovers some troubling trends. Buick, Cadillac, and Chevrolet combined sold just 96,000 vehicles in Q3. This is a stark contrast to 2023 when GM sold 900,000 vehicles in China and even more in 2019 with 1.4 million cars. Chevrolet has seen the steepest decline, selling a mere 8,000 units. Buick, once a market leader, managed 67,000 units, while Cadillac sold 21,000 vehicles—figures that are now a fraction of their 2019 monthly sales.
For Buick, the Chinese market is crucial, as it represents 90% of its global sales. Exiting China could mean the end of Buick, the oldest American auto brand. The question is no longer if GM will leave China, but rather when.
GM’s Electrified Vehicles: A Closer Look
While GM's electric and plug-in hybrid sales appear impressive, the details tell a different story. In August 2024, Buick sold just 758 Electra E5 units and 103 Electra E4 models, while Cadillac managed 292 Optiq and 87 Lyriq units—amounting to 1,240 vehicles. The more significant volume of 224,000 electric and plug-in hybrid cars comes from the Baojun and Wuling brands.
The SAIC-GM-Wuling joint venture, in which GM holds a 44% stake, contributes significantly to these numbers. Despite GM’s minority stake, the sales of Wuling’s popular models like the Honguang Mini EV and Bingo are counted towards GM’s electrified sales, though they rely more on local Chinese technology than GM’s innovations.
Challenges Facing Foreign Automakers in China
GM’s situation highlights a broader issue faced by foreign automakers in China. Between 2019 and 2023, many brands, including Volkswagen, saw a significant decline in sales. Chinese consumers are increasingly favoring domestic brands, with local names like Zeekr, Nio, Xpeng, and Voyah capturing the market by selling vehicles in urban shopping centers. In contrast, traditional brands like Chevrolet, Cadillac, Volkswagen, and Toyota are still tied to suburban dealerships.
Tesla’s Role in the Shifting Market
While most foreign brands struggle, Tesla remains an exception, maintaining a strong presence in the Chinese market. However, with Chinese automakers constantly introducing new models, there is growing criticism about Tesla's lack of fresh offerings.
No comments