General Motors (NYSE: GM) said that its sales in China increased 12.5% in November from a year ago, on a huge year-over-year jump in sales of SUVs driven by strong local demand for several all-new GM models.
Year to date, GM's sales in China are up 3.3% through November, outpacing the 1.9% increase for the overall passenger-car market in China over the same period.
GM is fighting back against cheap SUVs from domestic Chinese automakers with the little Baojun 510, which has been selling in huge numbers. Image source: General Motors.
GM is outpacing the market, but so are key rivals
Here's how GM's sales results in China stacked up versus its key global competitors and the overall market in November and for the year to date.
| Automaker | November 2017 vs. 2016 | Year-to-date 2017 vs. 2016 |
|---|---|---|
| General Motors | 13% | 3.3% |
| Ford Motor Company (NYSE: F) | (8%) | (6%) |
| Nissan (NASDAQOTH: NSANY) | 22% | 12% |
| Honda Motor Co. (NYSE: HMC) | 11% | 17% |
| Toyota (NYSE: TM) | (1.3%) | 7.5% |
| Overall China passenger vehicles | (0.03%) | 1.9% |
Data sources: Chinese Association of Auto Manufacturers and the individual automakers. Sales totals include sales by affiliated joint ventures. Year-to-date figures are through November. Overall China market figures are for "passenger vehicles", which include cars, SUVs, and minivans, but not commercial vehicles.
Hyundai Motor Company (NASDAQOTH: HYMTF) China sales fell 25% in November in large part because of what the Chinese refer to as "patriotic feelings": Tensions between the Chinese and South Korean governments led buyers to shop elsewhere. Honda and Nissan were able to take advantage.
Meanwhile, Detroit rival Ford is struggling in China with a dated product lineup that's losing ground to (among others) the new GM crossover SUVs; the company announced a turnaround plan earlier this month that includes a slew of new models.
What is (and isn't) working for GM in China right now
Here's what is working for GM in China right now: SUVs, specifically GM's recently renewed lineup of fuel-efficient car-based crossover SUVs. Sales of GM's SUVs as a group were up 73% in November from a year ago.
A big part of that growth came from GM's affordable Baojun brand, created specifically to compete with low-cost products from China's domestic automakers. GM sold over 48,000 Baojun 510 SUVs last month, driving the brand to an overall 52% year-over-year gain. GM's global crossover SUVs, the Cadillac XT5, Buick Envision, and Chevrolet Equinox (a brand-new model for China) also continued to sell well in November.