How Much Equity Income Can General Motors See From China By 2023?

-8.32%
Downside
45.35
Market
41.57
Trefis
GM: General Motors logo
GM
General Motors

Trefis estimates General Motors‘s (NYSE: GM) equity income from China would be around $2.3 billion by 2023 as Car sales would reach around 4.1 million for the company. China has seen higher car sales in the past few years. In 2018 we saw a slowdown in the global auto industry which has led to a decrease in sales volume for companies General Motors and Ford. Trefis estimates the demand to grow moving forward. For detailed analysis please check our interactive dashboard – How much Equity Income can General Motors see from China by 2023? In addition, here is more Consumer Discretionary data.

 

How have companies fared in China with respect to Sales volume?

  • General Motors’ sales volume increased from 3.7 million units in 2015 to 4 million units in 2017, but we saw a fall to 3.6 million units in 2018 primarily due to the global slowdown.
  • Ford has seen fluctuations in sales volume over the years and a big fall in 2018 to 0.8 million units, as it lost a bit of market share amid the global slowdown.
  • Daimler AG’s passenger cars has seen a continuous rise in terms of sales volume in China, rising from 0.4 million units in 2015 to 0.68 million units in 2018, growing at a CAGR of 19.2%.
  • Volkswagen has seen a steady growth in terms of sales volume in China, rising from 3.5 million units in 2015 to 4.2 million units in 2018, growing at a CAGR of 5.8%.
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How has General Motors fared around the world with respect to Sales Volume

  • Overall, General Motors has seen a fall in Sales volume from 10 million units in 2015, to 8.4 million units in 2018, primarily due to phasing out of Europe and the global slowdown.
  • North America sales volume has remained steady at around 3.5 million units while South America has seen a steady growth from sales volume of 645K units in 2015 to 690K units in 2018.

General Motors’ Equity Income from China in the past 4 years and forecast over the next  years?

  • General Motors’ equity income from China is nearly flat over the last 4 years. Net Income per vehicle has increased from $551.50 in 2015 to $559.60 in 2018.
  • Trefis estimates General Motors’ equity income from China would be around $2.3 billion by 2023 as Car sales would reach around 4.1 million for the company. While Net Income per vehicle is expected to be flat around $554.

 

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