Published By : 07 May 2015 |Published By : QYRESEARCH
As the economy slows down in China, General Motors Co. has experienced a fall in its deliveries in the region. China has been the largest market for GM. The car maker reported that the demand for its Chevrolet and Buick brands has dropped in the region. There has been a 0.4% drop in the overall sales of the vehicles by GM and its joint ventures. The automotive giant has been able to sell 258,484 vehicles in China last month. In the first two months of this year, GM has registered a dip of 0.8% in its sales. According to a report released by the company, the sales of Chevrolet dropped to 5.6% and Buick sales dipped to 8.5%. The demand for Wuling-brand vehicles has also decreased.
Industry analysts mention that though China has been the world’s largest auto market, the slowing economy is affecting the overall business. The foreign car manufacturers are especially affected as the local brands are gaining the market share by offering SUVs at cheaper rates. Also, the government is imposing purchase restrictions, which is affecting the vehicle registrations.
Matt Tsien, the president of GM China, mentioned last month that the market in China has become more competitive with slower growth and rising price pressure. Competitor Volkswagen has also echoed the same statement. In order to increase its market shared in China, the auto manufacturer is investing US$16 billion together with SAIC Motor Corp. by 2020. The company is optimist about the rise in passenger vehicles sales as forecasted by China Association of Automobile Manufacturers.