GM’s other key markets
General Motors (GM) divides its Automotive segment revenues into three geographical regions:
- North America
- South America
- Other International Operations
In this part of our series, we’ll examine how GM performed in the key markets of these regions in 2Q17.
2Q17 performance in China
China is a key potential growth market for GM. In 2Q17, the company reported consolidated sales of more than 852,000 million vehicle units in China, which was up 1.6% from its vehicle sales in 2Q16.
In 2016, GM reported a handsome rise of nearly 258,000 vehicle units in its China retail sales. These gains were driven by higher sales of SUVs (sport-utility vehicles) and other luxury vehicles in the country.
China’s auto sales growth rate recovered in 2Q17 after a dip in the first quarter due to a higher auto purchase tax. In the second quarter, GM also launched some new vehicle models in the Chinese market, including the Chevrolet Equinox SUV and the Buick Velite 5.
Performance in other regions
In 2Q17, GM continued to face challenges in oil-dependent regions like the Middle East, which are feeling the burn of low oil prices. In the past few years, auto giants (IYK) including Ford Motor (F), Fiat Chrysler Automobiles (FCAU), and Volkswagen (VLKAY) have all been facing challenges in the Middle East.
On the brighter side, GM’s 2Q17 revenues from South America rose 40% YoY (year-over-year) to about $2.3 billion. These higher revenues were the result of the company’s 17.9% vehicle sales gains in South American markets in 2Q17.
Continue to the next part for a look at GM’s 2Q17 margins.