General Motors (NYSE:GM) said its sales in China rose 14.5% in January from a year ago. GM was able to outpace the market's overall 11% increase, gaining market share in a month in which rival Ford Motor Company (NYSE:F) saw its China sales decline dramatically.
GM's sales gain beat most rivals'
Here's how GM's sales results in China stacked up against its key global competitors in January.
|Automaker||Jan. 2018 Sales||Change vs. Jan. 2017|
|Volkswagen (VW brand only)||296,900||9.7%|
|Overall China light vehicles||2,456,200||11%|
While Ford is struggling with a dated product line, GM has been posting steady gains on the strength of new and refreshed products. GM's gain in January was driven by strong results at both ends of the market.
GM's affordable offerings continue to shine in China
GM's entry-level Baojun brand, created to compete with low-cost domestic Chinese automakers, saw sales increase 36% from a year ago to 92,356.
Baojun's best seller is a compact crossover SUV called the 510: Over 43,000 were sold in January. A new wagon version of Baojun's 310 hatchback added more than 14,000 sales, roughly doubling sales of the 310 model line from a year ago.
GM's next-level-up brand, Chevrolet, also had a strong January in China. Sales rose 40% from a year ago, to 54,350 units, led by a big seller with a name that will be familiar to Americans: Chevrolet Cavalier.
The name is a familiar one, but this Cavalier is a China-only compact sedan based on the previous-generation Cruze. It's positioned as an affordable model, competing with similar offerings from GM's global rivals. (Ford's equivalent, based on the last-generation Focus, has another familiar name: Escort.) Sales of the Cavalier topped 19,000 units in January.
The midsize Chevrolet Malibu sedan also had a good month, with over 12,000 sold, and GM's new Chevrolet Equinox crossover continued to gain ground in China with about 6,600 sold in January.
Cadillac sales are booming -- in China
While sales of GM's luxury Cadillac brand have been stalled here in the U.S., the brand has been on a growth streak in China. Cadillac's China sales rose 12% in January to 20,222 units, giving the brand its twenty-third consecutive month of double-digit percentage growth.
As in the United States, Cadillac's best-seller in China is the well-regarded XT5 crossover SUV. But unlike the U.S., Cadillac's sedans -- particularly the big ones -- are also doing well in China: Sales of the XTS rose 32% in January, and sales of the range-topping CT6 jumped 50% from a year ago.
GM's best-selling Buick brand also did well in China in January, with sales up 5.7% to 113,007. But sales slipped 1.9% to 87.777 at GM's low-cost Wuling brand, which builds small commercial and passenger minivans.
Looking ahead: GM has a busy 2018 planned in China
With demand strong for GM's crossover SUVs in China (and elsewhere), the General is planning to expand its range of offerings as the year unfolds. GM said it will launch a total of 15 new and refreshed models in China this year, about half of which will be SUVs and MPVs (multi-purpose vehicles), the local term for minivans.
At least one of those models will probably be a Cadillac: The brand is expected to launch its long-awaited XT4, a compact crossover SUV, this fall. Given the exceptionally strong demand in China for small-but-upscale crossovers, it could quickly become a best-seller for Cadillac in the world's largest new-car market.