GM fights back in China with electric vehicles and cost cuts

General Motors (GM) is making a strong push to revive its fortunes in China after years of decline. The company once sold more cars there than in the US, but competition from local automakers has cut into its dominance. Now, GM is betting on electric vehicles and cost-cutting measures to regain its footing.

GM's troubles in China became clear when it took a $1.1 billion financial hit in late 2024 for restructuring its joint venture. The move signalled a shift in strategy as domestic brands pulled ahead in EV technology. By 2025, however, the company began turning things around.

Sales of new-energy vehicles (NEVs) in China jumped by 22.6% that year, nearing 1 million units. The growth also lifted GM's overall retail sales and market share. Looking ahead, every new model launched in 2026 will include an NEV version, with more production happening locally.

CFO Paul Jacobson has stressed the need to reduce EV production costs. The goal is to make GM's electric lineup more competitive against Chinese rivals. Success in China is now seen as vital—not just for profits, but to prepare for a broader battle with homegrown automakers expanding globally.

GM's recovery in China hinges on its electric vehicle push and tighter cost controls. The company has already improved sales and market share, but the real test will come in 2026. All new launches will feature locally made NEVs, marking a critical step in its turnaround plan.