General Motors (NYSE: GM) said on Monday that its sales in China came in 12% higher on a year over year basis in the quarter that concluded in September. The company attributed upbeat sales to a significant recovery in the largest Asian market for automobiles after months of inactivity due to the Coronavirus pandemic. It was the first time for GM to report quarterly sales growth in China since 2018.
General Motors currently has a per-share price of £24.70 versus a much lower £12.90 per share in March when the impact of COVID-19 was at its peak. Shares of the company started the year at £28.70 per share. Trading stocks online is easier than you think. Here’s how you can buy shares online in 2020.
GM delivered 771,400 vehicles in China from July to September
For July to September period, General Motors numbered its deliveries in China at 771,400 vehicles. In comparison, the U.S. automaker had reported a 5% annualised sales decline in China in the second quarter due to the COVID-19 crisis that disrupted production and weighed on demand.
General Motors has a joint venture in Shanghai with SAIC Motor Corp that manufactures Chevrolet, Buick, and Cadillac vehicles. Another joint venture with Guangxi Automobile Group and SAIC called SGMW makes no-frills mini-vans. SGMW starting manufacturing higher-end vehicles only recently.
In terms of individuals brands, GM said sales for Buick were up 26% in China in the third quarter, and 28% for Cadillac. Chevrolet sales in China, on the other hand, came in 20% lower in the third quarter. General Motors trimmed its sedan line-up in the United States from 13 models to only 3 models in just five years.
General Motors swung to a net loss of £584.46 million in Q2
From July to September, the automaker’s no-frills Wiling brand reported a 26% annualised growth in China in the recent quarter. Sales from Baojun vehicles were down 19% in the same period. According to the senior analyst Alan Kang of LMC Automotive:
“GM’s compact models returned to four-cylinder engines, and that helped sales growth. Cadillac also has a more complete line-up this year.”
General Motors published its earnings report for the fiscal second quarter in the last week of July that highlighted the company to have swung to a net loss of £584.46 million. At the time of writing, it is valued at £35.34 billion and has a price to earnings ratio of 30.62.
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