GM To Boost NEV Sales After Biggest Car Sales Drop in China
General Motors Company, the largest car maker in the United States, is accelerating the introduction of new electric vehicles (NEVs) in China as sales of its gasoline-powered cars in this country plummeted 15.1% to nearly 3.1 million vehicles year-on-year in 2019. GM on Tuesday also reported a 13.3% year-over-year sales loss in the fourth quarter,
The sharp reduction in sales for 2019 -- the largest for GM in China -- is the second consecutive year of declines for GM as China's economy continues slowing down and demand for motor vehicles stall. The China Association of Automobile Manufacturers (CAAM) predicts vehicle sales in China might fall 2% to 25.3 million in 2020, which would be a third straight year of declines.
Total car sales in China have been plummeting for the past 18 months. Car sales in China fell three percent in 2018, its first decline in about two decades, and things have only gotten worse since then. China is the world's largest automotive market. It surpassed the U.S. as GM's top-selling market in 2010.
GM China President Matt Tsien said the company anticipates China's economic slump to continue this year, bringing it more challenges and a depressed car market.
"We expect the market downturn to continue in 2020, and anticipate ongoing headwinds in our China business," said Tsien.
GM is accelerating its plan to introduce its own new energy vehicles (NEVs) in China to bolster its flagging sales. In January 2019, GM announced plans to introduce a record of more than 20 new and refreshed models in China in 2019 to maintain its growth momentum in the world's largest vehicle market. Ten of these new models will be NEVs.
Tsien claims GM will hit its goal of producing 10 NEVs in China by this year and an additional 20 by 2023.
"We're purposely being deliberate about our rollout," he said.
GM displayed the Chevy Menlo, its first all-electric Chevrolet for the Chinese market, at an auto show in Guangzhou from Nov. 22 to Dec. 1. This all-electric sedan can travel more than 400 kilometers (249 miles) on a single charge.
From 2021 to 2023, GM will double its number of NEVs available to consumers in China. In 2018, GM's NEV customers in China reached 200 million electric kilometers (124 million electric miles) driven, indicating increasing consumer acceptance of NEVs.
GM operates in China through SAIC General Motors Corporation Ltd (SAIC-GM); a joint venture with state-owned SAIC Motor Corporation Ltd. SAIC-GM manufactures and sells Chevrolet, Buick, and Cadillac cars.