Published on : Sep 07, 2015
General Motors Co has reported biggest plunge in China sales in August in the last five months. This coincides with deep economic slowdown and dropping equities in the largest auto market in the world.
In August on a year-on-year comparison, the vehicles sales for GM and its associated companies dropped 4.8%, while Nissan Motor Co Ltd and Ford Motor Co also reported shrinking sales for the month. This highlights the line between winners and losers in the China market.
The numbers are in sharp contrast with large sales gain for Toyota Motor Corp, Daimler AG DIAGn, the maker of Mercedes, and Honda Motor Co Ltd, last week in China. This demonstrates the importance of new, in-demand products needed to lure buyers.
As per forecast, this year, the economy of China is projected to growth at its slowest rate in the last twenty five years. Owing to a sharp run-up that happened towards the end of last year, mainland stock markets have slumped almost 40% since mid-June.
Compared to other key luxury car makers in China, Mercedes offers a fresh range of cars. The company, also recently revamped several of its models than Audi AG and BMW AG, which helped the luxury car maker to boost sales by 53.1% in the month of August.
Last year, Toyota and Honda launched hot-selling SUVs, a car segment that is predicted to expand by more than 20% keeping with the slowdown in the auto market, as stated by IHS Automotive.
To take best advantage of the auto market, automakers like GM are focused to catch-up on sales. In pursuit, the U.S. automaker introduced a new SUV this year in July in the Baojun budget range. However, three-fold sales of the vehicles has not been able to lift the relatively flat sales of the company in 2015.