How the Big Automakers Are Faring in China: General Motors Company (GM), Honda Motor Co Ltd (ADR) (HMC), Toyota Motor Corporation (ADR) (TM)

Page 1 of 2

Recently released China auto sales numbers spell out very different scenarios for some of the top automakers. General Motors Company (NYSE:GM), on one hand, continues to do well in the country. Sales for China’s best-selling automaker rose 7.9% in the first two months of the year.

That wasn’t the case for all automakers, though. Three of the big Japanese automakers – Toyota Motor Corporation (ADR) (NYSE:TM)Honda Motor Co Ltd (ADR) (NYSE:HMC), and Nissan (OTCBB:NSANY) — all experienced market share decreases for the first two months of the year in China. A main reason for this is the continuing territorial dispute between Japan and China which has led to increasing anti-Japanese sentiment in China.

General Motors Company (NYSE:GM)In the video below, analyst Brendan Byrnes explains why the China auto market is unique for these automakers, and which are on track to continue to do well in the country.

Andrew: Hey Fools, Andrew Tonner here. I’m joined today by Brendan Byrnes, our industrials analyst for Fool.com.

Brendan, let’s take a look at one of the biggest drivers of the auto market, China. Specifically, the recent developments of GM in China. When you look at this story line, what’s going on?

Brendan: General Motors Company (NYSE:GM) continues to do very well in China. Over the first two months, January and February, increased sales by 7.9% versus last year.

What’s interesting to see is the big Japanese auto makers — Toyota Motor Corporation (ADR) (NYSE:TM), Honda Motor Co Ltd (ADR) (NYSE:HMC), Nissan — all had market share decreases. The reason for that is the continued fallout over this territorial dispute that they’re having with China right now.

Investors of those companies, and of General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F), need to keep an eye on that and how that’s going to affect them down the road, because right now there’s some anti-Japanese sentiment in China, which is not a good thing for those companies when you’re talking about the biggest auto market in the world now.

We don’t know Ford’s February numbers yet, but we know they’re coming off a great January in which they doubled their sales from the year before. They sold about 60,000 cars in January. General Motors Company (NYSE:GM) sold about 310,000 cars in January in China, so clearly about one-fifth as many cars for Ford, but that also creates opportunity.

They’re pumping $5 billion into Asia, building all sorts of factories. They want to become a big player here, and I really like their plan.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!