Published on : Jul 06, 2015
The vehicle sales of the General Motors Co in June were reported to be flat in China, despite the price cuts introduced given earlier in the year did not succeed to raise demand.
GM and the joint ventures of the company in China sold 246,066 cars in June, which were reported to be unchanged from the previous year, as stated by the U.S. automaker recently.
On year to year basis, the automaker reported 4% drop in May sales and 0.4% drop in April, with the company having switched to retail sales over wholesale data for China market.
GM has been unsuccessful to counter dropping auto sales, in spite of introducing 20% price slash on 40 models in May. This is largely due to China’s economy exhibits growth rate slowest in 25 years. On top of this, the automaker is also facing challenging such as shifting consumer tastes, and showing assertion for small and affordable sport-utility vehicles.
As per a company spokesperson, multi-purpose vehicles and Sport utility vehicles (SUVs) are growing fast, but this was affected by a secondary factor in the market. The slow sales in the mini commercial vehicle and sedan segment of the market counteracted with the growing sales of multi-purpose vehicles and sport utility vehicles. .
In the first six months of 2015, GM reported to have sold 1.72 million cars, which is 4.4% higher sales than previous year. In the overall market, auto sales rose only 2.1% from January to May compared to the previous year, which gives 2015 the slowest start since 2012, as reported by statistics from China Association of Automobile Manufacturers (CAAM).
For the overall June sales CAAM will be reported this week.