Published Date : Sep 08, 2015
General Motors recently reported a major decline in the sales trend in China that has taken place over the past five months. This has come at a time when there is a serious economic slowdown that has affected the global automotive market in a big way. General Motors’ vehicle sales and also the sales of its joint business partners declined by almost 5% y-o-y basis in the month of August, and at the same time Nissan and Ford Motor Co. also reported that the sales for that particular month had declined significantly. This in a way showed the divide that exists between the winners as well as the strugglers in the China market at present.
There is a stark difference in the recent figures when compared to the earlier week’s gains from sales that were witnessed by companies in China such as Mercedes, Honda Motors Corp., and Toyota Motor Corp. This also pointed to the fact that there is a growing importance for newer products that are very much in demand in the market that will attract buyers significantly. It is expected that the economy of China will report sluggish growth all through this year, especially during the fourth quarter of this year.
With the mainland stock markets crashing by approximately 40%, the economy has entered into a rough economic cycle. Mercedes for quite some time now has been revamping most of its models than the BMW AG and the Audi AG and has also aided in lifting the deliveries in the earlier month by more than 50%. In 2014, Toyota and Honda had launched SUVs in the market which are a rather hot selling segment. Industry trends indicate that this segment is anticipated to expand greater than 20% in the current year that will be a positive change amidst the slowdown that is taking place in the market.