GM China sales dip 3.9% in Sept. on weak Buick, Chevy sedan volume
Sales at General Motors and its joint ventures dropped 3.9 percent from a year earlier to 295,236 vehicles in September as China's softening economy continued to undermine the auto market.
GM suffered from weak demand for Buick and Chevrolet sedans as well as Wuling microvans.
The U.S. automaker did not disclose deliveries for individual brands in September, but the company did release sales data for the first nine months. For the year to date, GM sales edged up 1.6 percent to 2.49 million vehicles.
In that period, Chevrolet sales declined 9 percent to 442,277 vehicles, while Buick deliveries rose 4 percent to 669,568 vehicles. Sales at Baojun -- GM's entry-level passenger-car brand -- jumped nearly 236 percent to 270,488 units.
But Wuling sales declined 8.7 percent to 1.05 million units as demand for commercial minibuses continued to soften.
Despite stagnant sales overall, GM continues to enjoy strong demand for SUVs. With an expanding product mix, SUVs accounted for 17 percent of GM's total sales in China last month, up from 6.1 percent a year earlier.
GM China President Matt Tsien predicted that SUVs, MPVs and luxury vehicles will represent roughly 80 percent of industry light-vehicle sales in China over the next several years. "GM is well-positioned to participate in this growth," he said in a statement.
GM expects a cut in China's purchase tax for small cars to also boost sales.
China has reduced the purchase tax levied on new passenger vehicles and light vans with engines of 1.6 liters or less to 5 percent, down from the 10 percent. The tax cut, enacted on October 1, will remain effective until the end of 2016.
Vehicles with 1.6-liter engines and smaller account for roughly 80 percent of GM's sales in China.
The U.S. automaker did not disclose deliveries for individual brands in September, but the company did release sales data for the first nine months. For the year to date, GM sales edged up 1.6 percent to 2.49 million vehicles.
In that period, Chevrolet sales declined 9 percent to 442,277 vehicles, while Buick deliveries rose 4 percent to 669,568 vehicles. Sales at Baojun -- GM's entry-level passenger-car brand -- jumped nearly 236 percent to 270,488 units.
But Wuling sales declined 8.7 percent to 1.05 million units as demand for commercial minibuses continued to soften.
Despite stagnant sales overall, GM continues to enjoy strong demand for SUVs. With an expanding product mix, SUVs accounted for 17 percent of GM's total sales in China last month, up from 6.1 percent a year earlier.
GM China President Matt Tsien predicted that SUVs, MPVs and luxury vehicles will represent roughly 80 percent of industry light-vehicle sales in China over the next several years. "GM is well-positioned to participate in this growth," he said in a statement.
GM expects a cut in China's purchase tax for small cars to also boost sales.
China has reduced the purchase tax levied on new passenger vehicles and light vans with engines of 1.6 liters or less to 5 percent, down from the 10 percent. The tax cut, enacted on October 1, will remain effective until the end of 2016.
Vehicles with 1.6-liter engines and smaller account for roughly 80 percent of GM's sales in China.
