Chevrolet quits China sales, shifts to exports

General Motors has halted Chevrolet's retail sales in China, pivoting the brand's domestic production entirely to exports, as foreign automakers grapple with falling market share and intensifying electric vehicle competition in the world's largest automotive market.

In a recent statement, GM China said that Buick and Cadillac hold a solid position to drive sustainable domestic growth, while Chevrolet's product lineup is optimized for overseas markets. The company vowed to deliver continuous after-sales and parts support for more than 7 million Chevrolet owners across China.

The strategic reset follows a deal earlier in August, in which GM extended its joint venture partnership with SAIC Motor for 20 years through 2047, marking the longest renewal among major foreign automotive joint ventures in China. Under the new agreement, GM will prioritize electrification for Buick and Cadillac, planning to launch no fewer than 30 new-energy models by 2030.

Chevrolet once focused on the US and China, but was less competitive elsewhere against Japanese and South Korean brands. Using Chinese capacity for exports, it can compete globally, a move that acknowledges China's manufacturing strength and is in step with the country's surging auto export momentum, said Yale Zhang, managing director of Shanghai-based consulting firm Automotive Foresight.

Zhang noted that vehicles produced in Chinese factories offer stable quality and lower production costs.

John Roth, senior vice-president of GM and president of GM China, emphasized the global potential of SAIC-GM's local manufacturing strengths.

"We see extensive global expansion opportunities out of China. SAIC-GM's robust capabilities in engineering, manufacturing and quality enable us to supply vehicles to the Middle East, Africa, South America, Mexico and the broader Asia-Pacific, supported by GM's mature global sales, service and parts networks," Roth said.

Chevrolet's China business has collapsed after years of rapid market evolution. Introduced in 2005, the brand peaked at 767,000 car sales in 2014 with nearly 1,000 nationwide dealerships. Sales plunged to below 9,000 units in 2025 and dropped to just 36 units in the first half of 2026. Official brand data show Chevrolet has shuttered physical retail outlets in major regions including Beijing and Chongqing.

Nationwide, SAIC-GM operates three vehicle manufacturing bases in Shanghai, Yantai in Shandong province, and Wuhan in Hubei province, with a combined annual production capacity of approximately 1.45 million units. Its Shenyang plant in Liaoning province closed in 2025. With its first-half sales totaling 231,200 units, roughly two-thirds of SAIC-GM's domestic capacity remains idle.

SAIC-GM is not alone. Data from the China Association of Automobile Manufacturers show foreign brands' passenger-car market share tumbled to 24.5 percent in June 2026, down from a peak of roughly 75 percent in 2014. The declining market position has triggered widespread business retreats among overseas automakers in recent years: Suzuki terminated its Chinese joint venture in 2018, Renault exited the domestic passenger-car market in 2020, Acura and GAC Fiat Chrysler halted local production in 2022 and Mitsubishi suspended domestic operations in 2023.

Against this backdrop, Zhang outlined two core survival strategies for foreign brands operating in China. The first centers on deep localization and electrification with Chinese partners. Major global players including Volkswagen, Toyota and Nissan have adopted this approach, leveraging Chinese vehicle platforms to develop tailored electric vehicles for the domestic market.

The second strategy focuses on revitalizing idle domestic capacity through exports, capitalizing on China's cost-efficient and high-quality manufacturing ecosystem to supply fuel-powered vehicles for global markets while avoiding the fiercely competitive domestic EV battleground.

An example is Yueda Kia, which has shipped over 582,000 units from the Yancheng plant in Jiangsu province since 2018, with exports exceeding 170,000 annually in 2024-25. Some China-made models are exported to South Korea, Kia's home country, helping the brand post steady overseas growth despite a shrinking domestic market.

caoyingying@chinadaily.com.cn