Chevy Could Be Axed In China As Sales Fall Off A Cliff

It’s believed that SAIC-GM could take over the after-sales network and maintenance of local Chevys

                                        https://www.carscoops.com/author/bradcarscoops-com/                                    

Chevrolet’s relationship with China, once a key market, has been anything but smooth in recent years. Over the past six years, its sales have plummeted faster than a base jumper who forgot their parachute. While the jumper might get a second chance, Chevy doesn’t seem to have a backup plan, and the company could be preparing to exit China for good.

Read: GM’s Sales In China Have Almost Halved Since 2017

According to a new report from the Chinese outlet Zaker, Chevrolet has indefinitely delayed three major projects, all of which were still in the pre-production phase. These projects, known internally as C223, C1YC-2, and D2UC-2 ICE, had significant ambitions. The C223 was intended to be an all-electric SUV, the C1YC-2 was planned to be the brand’s flagship SUV, and the D2UC-2 ICE was set to be a revamped version of the Chevrolet Trailblazer. As of now, however, all three projects are effectively dead in the water.

More critically, the same report also revealed that production of all existing Chevrolet models in China will soon come to an end. This marks yet another indication that the brand is scaling back its operations in the country, leaving its future there uncertain.

General Motors has not officially confirmed that Chevrolet is leaving China. However, SAIC-GM general manager Lu Xiao reportedly dismissed rumors of the brand’s withdrawal, calling them “fake news.” He then added, “we will not give up on Chevrolet,” but it seems he meant the company would not abandon its current Chevrolet customers.

One insider believes that Lu was indicating that SAIC-GM will assume responsibility for the after-sales network and maintenance of Chevrolet vehicles in China.

A glance at Chevy’s local sales figures reveals why GM may be losing faith in the brand. In 2018, Chevrolet sold 641,320 vehicles in the country, giving it a 2.8% share of the total market. That number then fell significantly to 512,455 in 2019 before cratering further in 2020 when just 309,155 new Chevys were sold in China.

Sales have continued to fall post-Covid, dropping to 269,261 in 2021, 231,111 in 2022, 168,588 in 2023, and just 52,774 in 2024. Through the first four months of this year, Chevrolet has sold just 5,314 vehicles, Car News China reports.