GM China’s EV, hybrid sales top petrol cars for first time

GENERAL Motors (GM) sold more electric vehicles (EVs) and plug-in hybrids than conventional petrol cars in China for the first time last quarter, though the milestone comes as total deliveries continue to fall.

The US carmaker sold more than 426,000 vehicles in the three months to September, with battery EVs and plug-in hybrids accounting for 53 per cent of those, it said on Thursday (Oct 10).

Still, overall sales slumped 21 per cent from a year earlier, and more than three-fourths of last quarter’s deliveries came from GM’s joint venture with China’s Saic Motor and Wuling Motors Holdings, which specialises in mass-market compact EVs. Buicks, Cadillacs and Chevrolets accounted for less than 100,000 units.

China’s rapid transition to EVs and fierce competition among local carmakers have hit sales and profitability at foreign manufacturers, including GM. It reported a US$210 million first-half loss for China, compared with a peak of around US$2 billion in annual equity income between 2014 and 2018. The fall from grace has forced the Detroit-based company to rethink its strategy in the world’s largest auto market, and cut costs by slashing jobs and reducing production.

“We are taking prudent actions to return to profitability in China, by focusing on growing our sales and controlling our costs,” said Steve Hill, the president of GM China.

The milestone is largely in line with the wider market in China, which also saw sales of EVs and hybrids exceed conventional petrol cars for the first time in July. Deliveries of internal combustion engine vehicles fell 15 per cent in the first eight months of the year, according to the China Passenger Car Association. BLOOMBERG