Chevrolet will cease new car sales in China, with sales plummeting nearly 99% over the past decade.

Korean media: "Sales vanished by 99% within a decade," Chevrolet ends new vehicle business in China!

On September 13, South Korea's JoongAng Economic published an article stating that Chevrolet is expected to cease sales of new models in the Chinese market. The brand once sold over 760,000 units annually, but last year its sales dropped below 9,000 units.

General Motors plans to discontinue selling the Chevrolet brand in China and will shift future production focus to Buick and Cadillac brands.

In 2014, Chevrolet reached its peak in the Chinese market with sales exceeding 767,000 units. However, sales declined rapidly afterward, dropping to fewer than 9,000 units last year—meaning sales have nearly vanished by 99% over the past decade.

One reason for poor performance is that while new energy vehicles have seen rapid growth in China, Chevrolet has remained largely reliant on internal combustion engine-based product lines.

The exit of Chevrolet does not mean General Motors is abandoning the Chinese market. Recently, General Motors and SAIC Group extended their joint venture agreement—SAIC-GM—for another 20 years, planning to shift future operations in China toward Buick, Cadillac, and new energy vehicles.

SAIC-GM aims to launch at least 30 new energy vehicle models by 2030 and expand the application of domestically produced technologies in the Chinese market.

Although Chevrolet sales in China will stop, production is expected to continue. According to reports, SAIC-GM will keep manufacturing certain Chevrolet models domestically and export them to overseas markets.

In other words, General Motors is effectively adopting a strategy of gradually phasing out Chevrolet’s sales network in China while repurposing its production facilities as export hubs.

Chevrolet ceasing car sales in China exemplifies the changing competitive landscape faced by global automakers in this market.

Previously, foreign brands themselves were a competitive advantage; however, recently Chinese consumers are quickly comparing electric vehicle technology, software capabilities, and price competitiveness.

Once selling more than 760,000 vehicles annually, Chevrolet now sees sales plummet to less than 10,000 units—a clear indication of how rapidly China’s automotive market is evolving.

Original article: toutiao.com/article/1876198148960267/

Disclaimer: The views expressed in this article are those of the author(s) alone.