General Motors Company (GM) and its joint ventures witnessed a 9.1% year-over-year increase in sales in China to 257,798 units in Jun 2014. The record high sales were driven by high demand for SUVs, MPVs and luxury cars.
The healthy sales are attributable to domestic sales of 133,316 vehicles by Shanghai GM, marking a 9.3% year-over-year rise. SAIC-GM-Wuling achieved sales of 122,359 units in China, up 10.9% year over year. Meanwhile, the domestic sales of FAW-GM amounted to 2,123 vehicles.
Sales of General Motors’ Buick brand surged 13.8% to 71,062 units in China, driven by high demand for the original Excelle family as well as Excelle XT and GT. Moreover, Chevrolet witnessed a 1.5% year-over-year increase in sales to 56,060 vehicles. The Cruze and Sail models of the brand generated strong sales.
Meanwhile, China sales for General Motors’ Cadillac brand surged 45.9% to 6,194 units during the month. The XTS and SRX cars generated strong sales for the brand. Further, the Wuling, Hong Guang and Baojun brands had sales of 118,091 units, 51,198 units and 4,268 units, respectively, during June.
First-Half 2014 Sales
In the first half of 2014, General Motors’ China sales surged 10.5% to a record high of 1,731,282 units. Shanghai GM reported sales of 819,667 units, up 10.3% year over year. SAIC-GM-Wuling posted sales of 883,724 units in China, reflecting an 11.5% year-over-year increase. Meanwhile, the domestic sales of FAW-GM fell 7.2% to 27,579 vehicles.
General Motors currently carries a Zacks Rank #3 (Hold). Some better-ranked automobile stocks worth considering include Fox Factory Holding Corp (FOXF), Gentherm Inc. (THRM) and China Automotive Systems Inc. (CAAS). All these stocks sport a Zacks Rank #1 (Strong Buy).