General Motors Company (GM - Analyst Report) and its joint ventures witnessed a 19.9% year-over-year increase in sales in China to 257,770 units in Feb 2014. The record high sales were driven by high demand for most major brands of the automaker.
China is the largest market of General Motors. The diverse product portfolio of the company helps sustain strong growth in the nation.
The healthy sales can be attributed to domestic sales of 109,889 vehicles by Shanghai GM, up 8.8%. SAIC-GM-Wuling achieved sales of 142,620 units in China, reflecting a 29.4% year-over-year increase. Meanwhile, the domestic sales of FAW-GM improved 38.7% to 5,092 vehicles.
Sales of General Motors’ Buick brand surged 13% to 59,164 units in China, driven by high demand for the original Excelle family as well as Excelle XT and GT.
However, Chevrolet witnessed a 0.1% year-over-year decline in sales to 46,347 vehicles. The Cruze and Sail models of the brand generated strong sales.
Meanwhile, China sales for General Motors’ Cadillac brand surged 90.8% to 4,378 units during the month. The XTS luxury sedan generated strong sales for the brand.
Further, the Wuling, Hong Guang and Baojun brands had sales of 137,018, 65,129 and 5,602 units, respectively, during February.
The increase in sales in China bodes well for the automaker as sales in the U.S. are declining due to severe weather conditions. General Motors recorded 222,104 vehicle sales in February, declining 1% year over year. Other large automakers like Ford Motor Co. (F - Analyst Report), Honda Motor Co., Ltd. (HMC - Analyst Report), and Toyota Motor Corp. (TM - Analyst Report) also witnessed a year-on-year dip in the U.S. sales in Feb 2014.
General Motors currently carries a Zacks Rank #5 (Strong Sell).