GM Plans to Take 10% of China’s Luxury Auto Market by 2020 image

GM plans to have 10% of China’s luxury auto market by 2020, the company plans to launch the new Cadillac models and expand its dealerships.

Bob Socia, head of GM’s China operation, presented Cadillac’s growth strategy in China, ahead of the ground-breaking ceremony for the brand’s new plant located on the outskirts of Shanghai.

“We are not only expanding in tier-one and tier-two cities, which would be pretty logical to Cadillac, but … China’s high-growth areas could be in tier-three or even four,” he said.

In China, GM sells the Chevrolet, Cadillac and Buick brands, but will currently focus on the Cadillac brand as it plans to increase its market share in the region in a tough competition with BMW, Mercedes and Audi. But it seems that Cadillac’s design does not attract many customers in China as last year the brand sold 30,010 units in the region compared with 149,782 sold in the US. Cadillac plans to sell 250,000 luxury vehicles in the Chinese market by the end of the decade.

GM aims at tripling sales in China reaching 100,000 units in the following two years, relying on the refreshed Cadillac SRX crossover and the locally manufactured Cadillac XTS sedan. Cadillac’s sales in China increased 74% year-on-year in May after they almost doubled in April.

Source: Reuters