Barra: GM Expects More Growth in China Through 2019
General Motors CEO Mary Barra spoke with media in Shanghai during Auto Shanghai 2015, revealing that GM anticipates annual market growth in China between 6-7% through 2019.
“China is playing a vital role in GM’s global success in all areas of our business,” said Barra.
This is something of an understatement given that China has been General Motors’ largest market for five years. In 2014, a year in which GM recorded a global sales record, more than one third of every vehicle sold was for the Chinese market.
Earlier this month, General Motors hit 1 million sales in China for the ninth consecutive year. Logging this accomplishment a mere four months into the year makes this the earliest that GM has hit the mark. Barra says that the company expects growth to continue exponentially through 2019, due to rising household incomes and the company’s ability to retain buyers at the time of vehicle replacement.
In fact, Barra stated that while about 30% of all passenger vehicle customers in China are repeat/replacement buyers, it is expected that this number will increase to about 70% by 2020.
“Our brands, including Chevrolet, Cadillac, and Buick, offer various sizes, styles and price points to meet the needs of buyers who are purchasing a second vehicle or looking to ‘trade up’ to larger or more luxurious vehicles,” said Barra.
GM is currently investing $14 billion into new products and facilities in China.
“GM is fully committed to China, our local partnerships and China’s vehicle buyers,” said Barra. “With our continued investment, we have a very exciting journey ahead of us.”