Pest Analysis Of General Motors In China

1287 Words6 Pages
General Motors (GM) has been participating in the Chinese automotive industry for over nine decades. In ensuring, that General Motor’s operations in China remains competitive as well as achieving their vision to be the most valued car marker in the Chinese auto market, as such a PEST analysis is to analyse the automotive market environment in China. The analyses will assist General Motor in understanding current and future implication on the business and automotive market environment in China that could affect General Motors operation and sales in China. From the analyses this paper will then provide the necessary recommendation and actions that General Motor could adopt in adapting to the changes in the automotive and business environment…show more content…
Company Introduction
General Motors (GM) has been participating in the Chinese automotive industry for over nine decades. Currently, General Motors operations in China comprises of full ownership of two enterprises, 11 joint ventures with local enterprises and over 58000 employees. The brands that are being offered by GM in China consist of Baojun, Buick, Cadillac, Chevrolet, Jiefang and Wuling which supplies China’s auto market with commercial and passenger car vehicles. GM boast a sales record of 3,870,587 vehicles in China which is a seven percent increase from previous years. General Motor’s overarching goal in China is to be the most valued automotive company in China with its partners. Recently, General Motors have invested in China’s leading car-sharing technology provider Yi Wei Xing. The alliance enables GM to gain insights in the car sharing market and Chinese consumers personal mobility needs. Furthermore, in 2016 GM was fined a sum of $29million by the Chinese government due to price fixing allegation that violated the country’s anti- monopoly law. (Associated Press, 2016). Moreover, GM in venturing heavily in to electric vehicles market and aiming to have 10 models of electric vehicle available for purchase in the Chinese auto market by 2020 (Associated Press, 2017)
Pest Analysis
Politics
The Chinese government has implement a programme to promote the purchase of electric vehicles (Dunne, 2017). The

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