GM's China Sales Down 1.8 Percent In July. Ignore It.
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 2011Jul-11Jul-10Change calcChange publishedShanghai GM91,81880,26914.4%14.4%Buick50,26543,54115.4%15.4%Chevrolet46,15435,38530.4%17.4%Cadillac2,3651,34376.1%76.1%SAIC-GM-Wuling77,94490,658-14.0%FAW-GM3,3535,560-39.7%Total173,398176,645-1.8%-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.
Join the conversation
Latest Car ReviewsRead more
Latest Product ReviewsRead more
- VX1NG I think it should but I am open and curious to hear the arguments from those who oppose income based fines.
- EBFlex No
- VX1NG My understanding is that by removing analog AM capabilities it will force the AM industry to transition to either analog FM or digital radio broadcasts. Both of which use radio bandwidth much more efficiently than analog AM. The downside with switching to digital radio broadcasts is, just like we saw with the analog to digital OTA TV transition; you either receive the signal or you don’t. Whereas analog FM does not have that same downside. The downside with switching to analog FM or digital FM is the coverage area is significantly smaller than AM.Phasing out analog AM would free up a large chunk of radio bandwidth and could allow for newer technologies to utilize the bandwidth.
- Bill 80% of people do not know how to or check the condition/ status of air pressure in thier tires let alone the condition of thier tires. Periodic safety inspections ensures vehicle are safe to be on the roads. I sure would like to be confident the vehicles around me are safe because they passed a objective inspection. The cause for suspicion in the US is most safety inspection programs are subjective and do not use technology to make the determination if the vehicle is safe or not. Countries that that use technology for annual vehicle inspections have a fairly high failure rate. I live in California a state without safety inspections and the freeways are litter ed with tire fragments and parts of cars. Every time it rains the roads are congested from accidents. Instagram is full of videos of vehicles with the wheels coming of while driving on the freeway. Just hope you won't be on of the casualties that could have been prevented if the vehicle owner had spend $7-$20 for a periodic safety inspection.
- Kcflyer The Prado is the GX. So they already did, a long time ago
Down 1.8% ignore it....do recall the government, banks, etc. saying the same thing as the great crash was beginning.
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.