General Motors Company (GM - Analyst Report) and its joint ventures witnessed an 11.4% year-over-year increase in sales in China to 3,160,377 units in 2013. The record high sales were driven by high demand for all the major brands of the automaker.
China is the largest market of General Motors. Although the demand for commercial vehicles in the nation declined in 2013, the diverse product portfolio of the company helped sustain strong growth.
The healthy sales can be attributed to record high domestic sales of 1,512,000 vehicles by Shanghai GM, up 13.6%. SAIC-GM-Wuling also achieved record high sales of 1,584,920 units in China, reflecting a 9.7% year over year increase. Meanwhile, the domestic sales of FAW-GM improved 6.3% to 59,092 vehicles.
Sales of General Motors’ Buick brand surged 5.7% to 809,918 units in China. The record high sales were driven by high demand for the original Excelle family as well as Excelle XT and GT.
Chevrolet also witnessed all-time high sales of 652,077 vehicles, up 8.5% year over year. The Cruze, Sail and Malibu models of the brand generated strong sales.
Meanwhile, a 24% increase in the sales of the SRX led to historical high China sales for General Motors’ Cadillac brand. Sales surged 66.6% to 50,005 units during the year. Apart from SRX, XTS also generated strong sales for the brand.
Meanwhile, Wuling and Baojun also had record high sales of 1,484,422 and 100,498 units, respectively, during the year.
Total exports to other emerging markets amounted to 83,145 units, up 7.7% over 2012. As a result, total sales of Shanghai GM, SAIC-GM-Wuling and FAW-GM amounted to 1,575,167 units, 1,603,580 units and 60,410 units, respectively.
General Motors’ competitor Ford Motor Co. (F - Analyst Report) has also set a record in China in 2013 with annual sales of 935,813 wholesale vehicles. This translates into a 49% surge from 626,616 vehicles sold in 2012. Volkswagen AG (VLKAY) and Toyota Motor Corporation (TM - Analyst Report) are other major international players in the Chinese market.
General Motors currently carries a Zacks Rank #3 (Hold).