"The Chinese auto market is fiercely competitive, with domestic automakers outperforming joint ventures."

"Large multinational automakers from Europe, America, Japan, and South Korea have faced increasing pressure in China in recent years, with General Motors suffering the most. Sales data proves that the Chinese no longer prefer American cars."

1. Sales Plunge Dramatically

"Leveraging the trend of new energy vehicles, domestic automakers have risen sharply in recent years, gradually eroding market shares from joint ventures."

"According to the China Passenger Car Association, domestic automakers sold 1.31 million vehicles wholesale in July, up 9% year-on-year. In contrast, mainstream joint ventures sold only 410,000 vehicles, down 31% year-on-year."

"Except for FAW-Toyota, sales of other joint ventures have fallen almost across the board, with a very apparent decline. Among them, the most striking is SAIC-GM."

"According to SAIC Motor's production and sales report, SAIC-GM sold 26,000 and 15,000 vehicles in June and July this year, respectively, with year-on-year declines of 72.02% and 82.42%."

"Expanding the time frame to the first seven months of this year, SAIC-GM sold just over 240,000 vehicles, down 55.14% year-on-year."

"In comparison, BYD sold over 340,000 vehicles in July alone, exceeding SAIC-GM's cumulative sales for seven months by 100,000 vehicles."

"Under the immense pressure of declining sales, SAIC-GM was rumored to have laid off 30% of its workforce, shut down factories, and reorganized its business in China."

"In response, GM China did not directly address the rumors, stating only, 'Our partnership with SAIC Motor and our commitment to promoting the long-term development of the joint venture remain unchanged.'"

2. Sales Plunge by 1 Million Over Six Years

"In fact, SAIC-GM's sales decline has been ongoing for some time, with its sales trend over the past decade resembling a rollercoaster."

"In 2017, SAIC-GM sold over 2 million vehicles, achieving a capacity utilization rate of 105% and peak sales, ranking second in the industry in China after SAIC Volkswagen."

"However, since then, SAIC-GM's sales have continued to decline, with a significant drop for six consecutive years."

"From 2018 to 2023, its sales were 1.97 million, 1.6 million, 1.47 million, 1.33 million, 1.17 million, and 1 million units, respectively, slipping to eighth place in the industry."

"Over six years, SAIC-GM's annual sales halved from 2 million to 1 million units."

"It is reported that SAIC-GM has four major production bases with a total capacity of about 1.9 million vehicles, implying that about 900,000 units of capacity are idle, accounting for nearly 50%."

"Entering 2024, SAIC-GM's situation continues to deteriorate, with sales showing a dramatic decline."

"Data shows that in the first and second quarters of this year, GM lost $106 million and $104 million in China, respectively. Analysts point out that this marks its second consecutive quarterly loss after hitting a roughly 20-year low in 2023."

3. Chinese No Longer Buy American Cars

"GM's sales dilemma in China is primarily due to its traditional fuel-efficient vehicles, such as Buick, Chevrolet, and Cadillac, gradually being 'abandoned' by the Chinese market as the era of new energy vehicles arrives, leading to a decline in Chinese preference for American cars."

"From a market segment perspective, Chevrolet, which focuses on cost-effectiveness, now has negligible sales."

"Some argue that Chevrolet should have exited the Chinese market long ago. However, in American automotive history, Chevrolet is a pride of American cars, and GM may not want it to withdraw from the market like Fiat or Mitsubishi."

"As a result, it can only streamline its product line, discontinue models like the Cruze and Malibu, and focus on SUVs to minimize losses, though with limited success."

"Buick, targeting the mid-market, is also on shaky ground."

"In 2017, GM decided to discontinue its four-cylinder Encore, which sold over 30,000 units monthly, in favor of three-cylinder technology, laying the groundwork for Buick's sales decline."

"Chinese consumers dislike three-cylinder engines, leading to poor sales of the three-cylinder Encore and a significant blow to Buick's reputation. Even after reverting to four-cylinder engines, Chinese consumers no longer buy into the brand."

"Buick is sold only in China and the United States, with 80% of its sales coming from China, making it a brand tailored specifically for the Chinese market."

"While Chevrolet can still exist in the United States even if it withdraws from China, the same cannot be said for Buick, which would essentially disappear from the market if it were to withdraw from China."

"As for Cadillac, targeting the high-end luxury market, it faces similar difficulties."

"With promotions like '70% off Jaguars, 80% off Tigers, 50% off Cadillacs,' Cadillac maintained its position as the top-selling second-tier luxury brand through significant discounts in the past."

"However, as the penetration of new energy vehicles increases and price wars expand, Cadillac's strategy of trading price for volume is becoming less effective."

"With all three major brands collapsing, SAIC-GM faces a challenging future. It must seriously consider whether to turn things around or continue to struggle."