U.S. automakers like GM are rapidly losing ground in China, once an engine for growth

General Motors (GM) reported a significant loss of $106 million in China during the first quarter, marking a notable downturn in a market that was once highly profitable for the automaker. This loss is part of a broader trend of declining profits and market share for GM in China over nearly a decade, exacerbated by geopolitical tensions, changing consumer preferences, and strong domestic competition.

Despite these challenges, GM remains committed to the Chinese market, with CEO Mary Barra expressing confidence in future growth and profitability. The company is focusing on new energy vehicles and luxury models to regain competitiveness. However, analysts are skeptical, noting the intense competition from domestic Chinese automakers and other external factors like the growing popularity of electric vehicles led by companies like Tesla.