By on August 5, 2011

GM China and its joint ventures sold 173,398 vehicles in China during the month of July, “as Shanghai GM and GM’s Buick, Chevrolet and Cadillac brands all set sales records for the month,” GM’s press release says. Nonetheless, GM’s China sales in July were down 1.8 percent from the same month last year. Now how did that happen? Why should you care? Why should anybody care?

We at TTAC care about GM China for many reasons, one of them being that GM serves as TTAC’s Patent Pending Sales Oracle for China. As goes GM, as goes China. This used to be the case in the past. Lately, the oracle became a bit wobbly. Why? Because more than half of GM China’s sales used to be little delivery vans made by the SAIC-GM-Wuling joint venture. This segment has collapsed for various reasons.

There was a preferential tax treatment last year for cars below 1.6 liter. What’s more, there was a “cars to the countryside” subsidy program. These little delivery vans are as popular in the Chinese countryside as pickups are in Texas.  However, the popularity fades with the subsidy money gone. And that drags GM’s overall unit sales numbers down.

GM China, July 2011

Jul-11 Jul-10 Change calc Change published
Shanghai GM 91,818 80,269 14.4% 14.4%
Buick 50,265 43,541 15.4% 15.4%
Chevrolet 46,154 35,385 30.4% 17.4%
Cadillac 2,365 1,343 76.1% 76.1%
SAIC-GM-Wuling 77,944 90,658 -14.0%
FAW-GM 3,353 5,560 -39.7%
Total 173,398 176,645 -1.8% -1.80%

Blue: TTAC calculation. Black: GM numbers.

Meanwhile, GM China’s passenger vehicle market is alive and well. Buick up 15.4 percent.

Chevrolet allegedly up 17.4 percent. When running the numbers, we get an even better number. 35,385 Chevys sold in July 2010 and 46,154 sold in July 2011 translate into an increase of 30.4 percent on my version of Excel. GM’s chief number honcho in Detroit is as stumped as I am. He kicked it back to Dayna Hart in Shanghai, where it is 10:30 pm on a Friday night ….

When Chinese new car sales will be announced next week on Wednesday, you probably will see a meek number. Don’t believe it. The Chinese car market is composed from two thirds of passenger vehicles, and one third of commercial vehicles. Passenger vehicle sales grow. Commercial vehicle sales are down.

Supporting indicator: Audi’s July sales in China were up 35.2 percent at 27,767 vehicles, accounting for more than a quarter of group sales, Reuters says.

 

 

Get the latest TTAC e-Newsletter!

5 Comments on “GM’s China Sales Down 1.8 Percent In July. Ignore It....”


  • avatar
    rnc

    Down 1.8% ignore it….do recall the government, banks, etc. saying the same thing as the great crash was beginning.

    • 0 avatar

      I’m not saying “Down 18%, ignore it.”

      I don’t think GM make much money anyway from a million cheap delivery vans which they have to share with two other companies, and for which they don’t get license fees for brand and design. They were nice to pad the number while they were up, now they hurt.

  • avatar
    CJinSD

    GM can’t go out of business fast enough for me, but this story seems to portray a company that has a properly diverse model line that provides for continuously strong sales in a variety of market conditions.


Back to TopLeave a Reply

You must be logged in to post a comment.

Subscribe without commenting

Recent Comments

  • Re: Generation Why: I Want My S16

    johnny_5.0 - While the M235i is really nice, I’m not sure why you were surprised you liked it a lot more than a 2.3 EB Mustang. IMHO you should have driven a GT Premium...
  • Re: Bark’s Bites: Viva La Fiesta!

    PrincipalDan - Praise be to people who do put snow tires on a daily driven Mustang. In Gallup NM middle of a snow storm the vehicle most likely to be seen stuck is a...
  • Re: Reader Review: 2014 Cadillac ATS

    sportyaccordy - The BMW 3.0T is one of the greatest engines of all time, and is way better than any of the ATS’ options. The less-than-BMW dynamics can be fixed with...
  • Re: Junkyard Find: 2001 Pontiac Aztek AWD

    JohnnyFirebird - I was at an auction in Montreal last winter and an Aztek with 240,000 kilometers got, I believe, $800. And exterior-wise it wasn’t rough at all.
  • Re: Bark’s Bites: Viva La Fiesta!

    FreedMike - Yeah, except…winter tires are a pain.
  • Re: Wilson: $8B Stock Buyback Would Boost General Motors’ Value

    jacob_coulter - If they have the means for an $8 billion dollar stock buy back, how come they don’t have the funds to pay back their...
  • Re: Junkyard Find: 2001 Pontiac Aztek AWD

    JohnnyFirebird - My Volvo customers aren’t this interesting.
  • Re: Reader Review: 2014 Cadillac ATS

    DeadWeight - BS. They do not “happen” on all makes. Sonata? Accord? Camry? Lexus anything? MB C Class? Fusion? BMW 3 Series? NOPE. Audi A4? S4? Not even a VW...
  • Re: Generation Why: I Want My S16

    bball40dtw - I enjoy the ecoboost engines when they are uprated, top trim engines with a performance spin. As volume engines, I don’t find the four cylinder ecoboost...
  • Re: Bark’s Bites: Viva La Fiesta!

    FractureCritical - I’m probably one of the few here that have actually done what you’re talking about and seriously weighed the ST brothers against more...

New Car Research

Get a Free Dealer Quote

Staff

  • Contributing Writers

  • Jack Baruth, United States
  • Brendan McAleer, Canada
  • Marcelo De Vasconcellos, Brazil
  • Vojta Dobes, Czech Republic
  • Matthias Gasnier, Australia
  • W. Christian 'Mental' Ward, Abu Dhabi
  • Mark Stevenson, Canada
  • Cameron Aubernon, United States
  • J Emerson, United States