GM’s key markets
General Motors (GM) divides its automotive segment into three key geographical regions: North America, South America, and Other International Operations. Let’s take a look at how GM performed in its other key markets in the fourth quarter of 2017.
4Q17 performance in China
China is one of the key potential growth markets for General Motors among all its international business operations. In 4Q17, the company’s consolidated sales of 1.3 million vehicle units in China were up 5.6% YoY (year-over-year) and 31.6% from the previous quarter.
With this, GM reported an increase of 3.2% in its 2017 China retail sales to 4.0 million vehicle units. These solid gains were mainly driven by higher sales of UVs (utility vehicles) and other luxury vehicles in the country.
China’s auto sales growth rate has improved in the last three quarters after slower growth in 1Q17 due to a higher auto purchase tax in the country. In the fourth quarter last year, GM’s China market share also improved to 14.5% as compared to 14.1% in 4Q16.
South America sales rose
In 4Q17, GM’s sales in South America continued to recover and rose significantly by 12.2% YoY. However, the company’s market share in the region fell slightly to 16.5% in the last quarter as compared to 16.8% in 4Q16.
Note that in the last couple of years, other auto giants (IYK) including Ford (F), Toyota (TM), and Volkswagen (VLKAY) also have faced challenges in South America due to weak economic sentiment in the region.
Continue to the next part to learn how General Motors’ margins were in 4Q17.