GM remains coy about Chinese exports

US automaker GM continues to hail the efficiency and low cost of its Wuling joint venture (JV) with China’s Saic and Guangxi Auto. But it is still noticeably reluctant to commit to bringing its BEVs in volume to markets outside of China.

According to Ryan Brinkman, automotive equity research analyst at bank JP Morgan, GM’s China sales rose by 40pc from Q3’24 to Q4’24, “driven by inexpensive EVs such as the Wuling Bingo”. And while the analyst has some concerns around the profitability of the Bingo, a subcompact/B-segment car, and the A-segment Hongguang Mini EV city car, he also sees opportunities.

“What are the ways you can capitalise upon these high-volume, but low-priced — and I am presuming low-profit — vehicles?” he asks GM’s senior management. While GM may be able to leverage financing or aftermarket parts and services, Brinkman sees the potential of exports to improve economics.

“Some other automakers have mentioned similarly priced vehicles in China might be unprofitable, but they can then make money when exporting them to higher cost markets,” he notes.

GM’s current strategy in Europe, for example, is to re-enter the continent as a BEV-only seller with its growing range of premium all-electric Cadillacs. But commentators have wondered why it would not bolster this move with a second prong offering budget China-made BEVs in smaller segments.

But GM remains noticeably cool on Wuling exports. “We do work with Wuling and source some vehicles from Wuling to other international markets,” GM CEO Mary Barra concedes, while “mak[ing] sure the products meet the standards for each of those different countries”.

“We have been successful doing that,” she insists. But there is as yet no evidence for any GM enthusiasm for an export blitz on its small, cheap Chinese BEVs.

“Wuling is known to be an incredibly efficient and low-cost producer,” Barra maintains, and its products are “very popular with consumers”. Just do not expect to see them in many markets outside of China anytime soon.