On its expansion spree, the world-renowned General Motors achieved one more milestone by creating a design studio in China on Monday. The company will no longer be designing petrol vehicles. Instead, it will be offering all its services on developing connected and electric cars.
The initiate has come out as the US’s largest automobile giant decided to snap the ties from manufacturing diesel and petrol vehicles from 2035. Moreover, for getting there, it is trying to get inroads in China and to achieve that, cutting down on archaic technology is important. Therefore, in an intention to make a strong foothold, the carmaker deems it essential.
Moreover, GM has an ambition of attaching a recurring revenue model, and there’s no better place than China to supply its software and services once its initial products get established in the market.
Swapping services and electric vehicles are two of the most vital components of growth that GM sees for turning its fortunes even bigger. Interestingly, GM has noted it looks to make one million annual sales by 2025 in the US and China.
In the previous month, the company had said it would shell out USD 35 billion by 2025 on autonomous electric vehicles. It would be up 75 per cent since March 2020, before the coronavirus’s deadly impact on the industry.
Notably, GM sells its cars in China with the two regional joint ventures that are owned by SAIC Motors. It sold around 170,000 electric vehicles in China in 2020. It was many a times more than during 2019 (50,000 ).