GM Achieves New Milestone As EV And PHEV Sales Outpace Gasoline Vehicles In China

In a significant shift reflecting the evolving automotive landscape in China, General Motors (GM) has reported that its sales of electric vehicles (EVs) and plug-in hybrids (PHEVs) have surpassed those of conventional gasoline vehicles for the first time. 

Sales Breakdown and Growth

According to GM China, the company and its joint ventures delivered over 426,000 units in China during Q3 2024, marking a 14.3% increase from the previous quarter. This represents the highest sequential growth rate since Q3 2022. Notably, new energy vehicles (NEVs), which include both battery electric vehicles (BEVs) and PHEVs, accounted for 52.7% of total deliveries, with more than 224,000 units sold. This represents a substantial 60.7% year-on-year increase in NEV sales.

Steve Hill, GM senior vice president and president of GM China, stated, “We are building momentum for both sales volume and market share in China. We are taking prudent actions to return to profitability in China, by focusing on growing our sales and controlling our costs.”

Notably, the SAIC-GM-Wuling, GM’s joint venture, was the powerhouse with deliveries topping 328,000 units, primarily driven by the Wuling Hong Guang MINI EV and the Wuling Bin Guo EV.

Challenges and Market Context

Despite the positive shift towards EVs, GM faces significant challenges in the Chinese market. Overall sales slumped 21% year-over-year, reflecting the broader struggles faced by foreign automakers in China. The company reported a $210 million first-half loss for its China operations, a stark contrast to its peak performance of around $2 billion in annual equity income between 2014 and 2018.

Competition from Chinese EV Makers

The success of Chinese EV manufacturers, particularly BYD, is putting pressure on foreign automakers. BYD has been dominating the market with ultra-affordable EVs like the Seagull, which starts at under $10,000. In September alone, BYD sold over 400,000 NEVs, marking its fourth consecutive record-breaking sales month.

Industry Transition

As GM continues to adapt to the rapidly changing Chinese automotive market, its focus on NEVs appears to be paying off. However, the company faces the dual challenge of increasing its market share in the highly competitive EV segment while also returning its Chinese operations to profitability. 

Read More: GM Drops ‘Ultium’ Name in Major Shift To Its EV Strategy

The success of its joint venture with SAIC-GM-Wuling in the compact EV market provides a bright spot, but GM will need to continue innovating and adapting to maintain its position in the world’s largest automotive market.

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