During the 2014 Beijing Motor Show, General Motors President Dan Ammann and GM Executive Vice President and GM China President Matt Tsien shed light on the imminent growth plans for the Chinese market, and the numbers involved are enormous.
To continue the momentum GM and its Chinese partners are enjoying in the region, the executives announced a $12 billion investment plan between 2014 and 2017. That investment will go towards funding facility and capacity expansion and new product programs. The money will also fund the launch of more than 60 new and/or upgraded vehicles coming to market through 2018. Local R&D efforts will also increase. But looking even farther down the road — 2016, 2020 and beyond — we learn even more of what’s in store. Such as:
- GM will add one new Cadillac per year through 2016
- GM will add 11 new SUVs between now and 2018 in anticipation of the market tripling, growing to 7 million annual units
- The automaker will also increase its MPV offerings, as segment sales will likely double to 2.8 million by 2020, from about 1.4 million last year
- It will also expand its compact vehicle lineup, as the segment eyes a volume of 10 million units by 2020
- Within six years, replacement or repeat purchases in China could exceed two-thirds of industry demand, compared to one-third today. This trend is expected to drive demand for more diverse offerings.