GM Sales Drop Even After Slashing Prices
Published By : 04 Jun 2015 | Published By : QYRESEARCH
The sluggish Chinese economy has hit General Motors for the second month in a row with further dip in the sales figures. China has been the automotive giant’s largest market. However, even the rate cuts on 40 models under Cadillac, Buick, and Chevrolet brands have not helped the car manufacturer’s business in China. Last month, GM along with its Chinese joint ventures managed to sell 252,567 vehicles, which was 4% lower than its sales numbers registered a year ago. The company has attributed the drop in the sales to the changeover and phasing out of older models.
International car manufacturers have been struggling in China with the economy plummeting and the local brands offering cheaper SUVs, thereby gaining market share. The sale of passenger-vehicles increased at the slowest rate in five months in April, with most of the local brands registering higher sales figures than the international brands. According to the industry analysts, consumer sentiment has been at a lying at a low point and this has affected the car sales in the country.
Low deliveries in April led GM to slash prices of its models. Its joint venture with SAIC Motor Corp. in China announced price cuts of as much as US$8,700. However, that has not helped the deliveries of Chevrolet and Buick from dipping by 2.2% and 13% respectively. The auto manufacturer has focused more on manufacturing its Envision SUV, which has emerged as the savior for the company with a monthly sales record of 11,556 units.