GM and SAIC Extend China Joint Venture for 20 Years
Tashkent, Uzbekistan (UzDaily.uz) — U.S. automaker General Motors and China's SAIC Motor have extended their joint venture agreement in China for another 20 years. The new agreement provides for expanded vehicle development in China and positions the country as an export hub for overseas markets.
The extension was announced after GM completed a major restructuring of its China business, which included closing several facilities and discontinuing part of its model lineup. The measures were introduced in response to intensifying competition from Chinese automakers, particularly BYD.
General Motors said the 50-50 joint venture will expand the development of new vehicles in China to better meet the needs of local consumers.
The company also plans to use its manufacturing operations in China as an export hub. Buick and Cadillac vehicles produced in China will be shipped to markets in the Middle East, Africa, South America, Mexico and several other Asian countries. The first export model will be the China-developed Buick Electra series, with shipments scheduled to begin later this year.
SAIC Motor said extending the partnership will help bring Chinese automotive innovations to global markets. Independent automotive analyst Lei Xing said using Chinese research and development capabilities to support GM's global business could become a model for other joint ventures between foreign and Chinese automakers.
General Motors entered the Chinese market in 1997 when it established its joint venture with SAIC. However, the company's sales in China in 2025 fell by more than half compared with the record level reached in 2017, when it sold more than 4 million vehicles. Buick, Chevrolet and Cadillac lost market share to Chinese manufacturers, largely because of a limited range of competitive electric vehicles.
Under its new strategy, GM will focus its operations in China on the Cadillac and Buick brands while discontinuing Chevrolet sales in the domestic market. Production of Chevrolet models for export will continue under a separate joint venture involving GM, SAIC and Wuling.
The SAIC-GM joint venture plans to introduce at least 30 electric and hybrid models by 2030.
The strategy will focus primarily on vehicles developed in China. One of the key models will be the Buick Electra E7, which recorded sales of more than 10,000 units in its first month on the market. The electric crossover will become the joint venture's first premium model to be exported outside China.
GM said it has no plans to export China-made vehicles to the U.S. market because of existing import tariffs and national security-related restrictions.
The company also said its China business has returned to profitability following the restructuring launched in 2024 and has delivered positive financial results for several consecutive quarters.
The extension of the agreement with SAIC reflects the strategy of several global automakers that continue to deepen partnerships with Chinese companies despite intensifying competition and declining market share in China, seeking to maintain their presence in the world's largest automotive market.
