General Motors have witnessed one of the largest sales declinations in China this year. It also feels that the China business will persist this year as the world’s biggest auto market suffers a prolonged slump. General Motors along with its partner has sold around 3.09 million vehicles in China in 2019 which shows a direct 15% declination for general Motors which was once amongst the top foreign automaker in China.
Several other us automobile companies have also released their fourth quarter and full-year or auto sales for 2019 which shows that there has been an overall decline in sales in the previous year. GM is also planning to bring around 10 new energy vehicles in the market by the year 2020. GM will also require competing with the local automaker companies of China such as NIO Inc., BYD Co. and, Guangzhou Xiaopeng Motors Technology Co. known as Xpeng.
Matt Tsien, head of GM China business who is based in Shanghai said: “We expect the market downturn to continue in 2020, and anticipate ongoing headwinds in our China business.” The number of vehicles that have been sold in the US in 2019 have really come down when compared with the statistics of the previous years. However, the demand for SUVs and trucks remained robust for the previous year which really helped to offset the sharp declines in the other vehicles.
The China Association of Automobile Manufacturers feels that the vehicle sales may drop 2% to 25.3 million units in 2020, which is going to be third consecutive year of decline. The major reason why the US automakers sales have tumbled in China at a much faster speed is because of the consumer backlash to President Donald Trump’s trade policies.