Between now and 2020, GM and its joint ventures plan to roll out more than 60 new and refreshed models in China, including 13 this year, with a strong focus on SUVs, MPVs and luxury vehicles.
During the period, GM and its joint ventures will roll out more than 10 new energy vehicles under the Chevrolet, Buick, Cadillac and Baojun brands. They will include the Shanghai-built Cadillac CT6 Plug-in Hybrid Electric Vehicle (earlier post), which will go on sale later this year.
Continued strong demand by customers generated record vehicle deliveries, which helped China remain GM’s largest market. Last year, China accounted for more than one-third of the company’s global deliveries. GM expects China’s vehicle market to increase by 5 million units or more by 2020, representing growth of about 3-5% annually.
GM anticipates about 4.2 million units of growth in China’s SUV, MPV and luxury segments through 2020, with the industry’s luxury segment expected to generate compound annual growth of more than 10% during that period.
To capitalize on this trend, about 40% of the new vehicles that GM launches in China over the next five years will be SUVs and MPVs, and GM’s Cadillac luxury brand will introduce 10 new and refreshed models.
The China market will also benefit from GM’s global initiatives to accelerate the refreshing of its portfolio. This year and in each of the next few years, 40% of the company’s global sales are expected to come from new and refreshed models, up significantly from 25% in 2015. Several of these vehicles will be developed, built and sold in China.
GM announced last July that it will invest $5 billion over the coming years in a family of vehicles for global growth markets. Working with its Chinese partner SAIC, GM will replace several current vehicles for growth markets based on multiple architectures with an even larger family of vehicles based on one core architecture.
In addition to vehicles, GM is also addressing business opportunities in value-added services such as automotive financing and insurance.
Its SAIC-GMAC joint venture is the largest dedicated automotive finance company in China. By the end of this decade, GM sees potential for up to 40% of car buyers in China to finance their purchases, compared to about 30% in 2015.
At the same time, GM is executing a plan to capitalize on the future of personal mobility using tools such as connectivity, ridesharing, car sharing and autonomous driving.
GM holds nearly 500 connectivity patents and has been the industry leader for two decades with OnStar. By the end of 2016, GM will have 12 million OnStar-connected vehicles on the road. By 2020, more than 75% of its global sales volume is expected to be actively connected. In China, all Cadillac, Buick and Chevrolet models will be connected by 2020.
Earlier this month, Shanghai OnStar and the Midea Group announced a strategic partnership for the integration of onboard telematics and smart household technology to enhance the consumer experience. (Earlier post.)
GM recently announced a long-term strategic alliance with Lyft to create an integrated network of on-demand autonomous vehicles in the United States. GM will invest $500 million to help the company continue the rapid growth of its successful ridesharing service. (Earlier post.)
In January of this year, GM started its own personal mobility brand called Maven, which combines and expands the company’s multiple car-sharing programs, including the EN-V 2.0 pilot program with Shanghai Jiao Tong University. (Earlier post.)
GM followed that up earlier this month, when it announced the acquisition of Cruise Automation to add Cruise’s deep software talent and rapid development capability to further accelerate GM’s development of autonomous vehicle technology. (Earlier post.)