SAIC, GM extend China joint venture by 20 years to 2047

SAIC Motor (SSE: 600104) and General Motors (NYSE: GM) have signed an agreement to renew their China joint venture, SAIC-GM, extending the partnership by 20 years to 2047.

The signing ceremony was held in Shanghai on August 5, attended by senior officials from the city.

The renewal builds on nearly 30 years of cooperation and is a vote of confidence in the long-term value of the Chinese market at a time of profound change in the global auto industry, the two sides said.

The shareholders will further coordinate technology R&D, supply chain and global market resources to support the joint venture's shift toward electrification and intelligence as well as its global expansion, according to statements on Wednesday.

SAIC-GM was founded in June 1997 and is owned 50-50 by the two partners. Its brands include Buick, Chevrolet and Cadillac.

From now through 2030, the joint venture will launch at least 30 new energy vehicle (NEV) models, filling out the Buick and Cadillac line-ups, according to their statements today.

SAIC-GM aims to consolidate its lead in NEV penetration among joint venture brands while moving faster to join the ranks of China's mainstream NEV brands.

The company rolled out its Xiaoyao super-integrated architecture in 2025, completing its technology line-up spanning all-electric, plug-in hybrid and extended-range powertrains, with local R&D carried out through the Pan Asia Technical Automotive Center.

The renewal also opens up room for exports. The Buick Electra L7 sedan will begin shipping overseas in October, becoming the first premium NEV model exported by the joint venture in China, SAIC said.

SAIC-GM will continue to expand into the Middle East, Africa, South America, Mexico and the Asia-Pacific region, according to their statements.

The long-term commitment comes as joint venture brands remain under pressure in China. SAIC-GM sold 34,773 vehicles in July, down 17.7% year-on-year.

In the first seven months of the year, the joint venture's cumulative sales were 265,927 vehicles, down 7.45% year-on-year.

Other foreign automakers are also extending their China joint venture agreements, though less aggressively.

Japanese auto giant Honda and GAC Group (HKEX: 2238) signed a renewal agreement on July 20 that extends GAC Honda to 2038, with their ownership split unchanged.

GAC Honda's cumulative sales in the first half of this year were 68,318 vehicles, down 55.82% year-on-year.