GM China new vehicle sales have been flat last month even as the third largest automaker in the world has opted for extensive price cuts across its lineup in the world’s biggest single auto market.
The broad price cuts that were announced earlier this year seem to have failed to spark a demand resurgence, with GM and its Chinese joint-venture partners delivering 246,066 units last month, which is almost the same level for the June 2014 month, according to a statement from the company. The data compares favorably though with the April figure, when demand lagged by 0.4 percent and then fell strong by 4 percent year-over-year in May. That month, the largest US automaker also modified its reporting habits, switching to retail sales rather than wholesale data for China. Retail sales are generally seen as a more trusting indicator of customer demand across the auto market. “SUVs and MPVs (multi-purpose vehicles) are growing fast but that growth was offset by the segment shift – sales slowing in the sedan and mini-commercial vehicle market,” commented a Gm spokesperson on the sales figures in June.
GM has so far been unsuccessful in battling the slowing auto sales in China, its largest market, even as the company and its partners cut the prices of 40 models back in May by as much as 20 percent. China’s economy has been struggling, surging at the slowest pace in 25 years. The US carmaker has also been caught off-guard by the rapid shift in consumer preferences – Chinese buyers have recently fallen in love with subcompact and compact, affordable sport utility vehicles.