China is the world’s largest automotive market by far. General Motors is the second largest foreign automaker in China. The country is also GM’s top-selling vehicle market, with sales slightly over 3 million vehicles in 2019. As business activity in China recovers from COVID-19, GM sales in the country grew over 13 percent in April. This is a significant turn-around compared to the first quarter of this year when sales fell 43.3 percent.
In a recent Medium article, I surmised there’s a positive business case for GM post-coronavirus, with China will playing a major role. First, pickup trucks will help drive GM’s key North American profit engine as sales of these vehicles remain resilient even during this coronavirus period. Pickup profits will help the company keep it’s commitment to the development of electric vehicles and new battery technology. And it’s this commitment to EVs that will assist the company as it continues to grow its business in the all-important Chinese market. There’s no more important automotive shift in China than the government’s mandated shift to EVs.