This time, China can't save Buick.

The end of February to early March marks a busy season for new car launches, with brands like Xiaomi, Dongfeng, Chang’an, and Nissan all unveiling new models.

The Buick brand under SAIC-GM Automobile also held a spring launch event on February 28.

By 2025, Buick plans to introduce four entirely new models and six revamped ones, featuring over two new energy vehicles across its MPV, SUV, and sedan categories.

The most noteworthy announcement is that all Buick models will adopt a fixed pricing model.

Notably, the price of the Regal 25T Elite Edition is only 106,900 RMB.

Consider this: 20 years ago, the starting price for the Regal, a B-segment vehicle, was a steep 250,000 RMB.

Why such a drastic price drop from 250,000 to 100,000 RMB?

Because, Buick is in a hurry.

1. Buick in China

In 2018, The New York Times published an article discussing Buick’s performance in the Chinese market, stating it almost became a “Chinese brand.” Forbes shared a similar sentiment, suggesting that Buick seems more like a “Chinese brand” rather than an “American brand” in China.

In China’s automotive industry, a popular saying goes: “China’s Buick, the world’s Chevrolet.”

Both Buick and Chevrolet belong to General Motors in the United States.

How did Buick become “China’s Buick”?

Founded in 1903, Buick is one of the oldest American car brands, predating its parent company, General Motors, by five years.

The 1950s were Buick’s golden era, with annual sales surpassing 700,000 units.

Afterwards, sales declined year by year.

The change in Buick’s U.S. sales from 1955 to 2018

By 2018, Buick’s sales in the U.S. were only 200,000 units, akin to its numbers a century prior.

As the West faltered, the East shone.

In the Chinese market, Buick’s sales reached an astounding 1.06 million units.

This means Buick’s China sales were five times its U.S. sales, accounting for over 70% of global sales.

Even today, China remains Buick’s largest single market, contributing over 60%.

While Buick’s U.S. sales dwindled, it found new growth in China.

The profits from China allowed Buick to reinvest in the U.S. market.

Moreover, Buick’s success in the world’s largest car market boosted its global brand image.

China saved Buick.

American media even noted that some models designed and manufactured for China were sold back to the U.S.

The most notable example is the Envision.

This mid-sized SUV was designed for the Chinese market.

Launched in 2014, it was first produced and sold in China before being exported to other markets, including the U.S. in 2016.

Seeing the Envision’s success in the U.S., Buick expanded production to the U.S. in 2020.

From the perspective of the American media, Buick is primarily a car brand designed, produced, and sold in China.

Frankly, it does resemble a Chinese brand.

2. Against All Odds

As early as the 1920s, Buick entered the Chinese market. Known for its luxury and durability, it quickly became the preferred car for Chinese officials and wealthy businessmen of the time.

Due to World War II and post-war geopolitical conditions, Buick’s sales in China were sporadic. In 1997, General Motors and SAIC Group formed a joint venture, SAIC-GM Buick, marking Buick’s official entry into the Chinese market.

This partnership signaled Buick’s formal entry into the Chinese market.

Back then, domestic sales in the U.S. had dropped to 100,000 units, indicating a grim outlook.

In China, other foreign brands like Jeep, Volkswagen, Peugeot, and Citroën had already made their mark.

How did Buick defy the odds amid internal and external challenges?

First, in positioning, it established an image of mid-to-high-end cars.

Around 2000, the Chinese had a favorable view of foreign cars. The perception was closely tied to the product, especially the first model introduced. Arguably, the first product launched by a foreign brand in China shaped the first impression of Chinese consumers, significantly impacting its brand positioning.

Unlike Volkswagen’s Santana, Citroën’s Fukang, or Toyota’s Vios—all geared towards family use—Buick’s first car in the Chinese market was a mid-to-high-end sedan. This vehicle catered to both business and family users, filling a gap in China’s mid-to-high-end car sector at the time. To better meet Chinese consumer demands, Buick and SAIC made over 600 modifications.

One detail: the designers enlarged the footrests and added more controls for the air conditioning and radio to enhance the luxury feel.

As expected, the model thrived in the market, solidifying Buick’s image as an American luxury car brand. Compared to Mercedes-Benz or BMW, Buick lacked brand power but offered affordability and was a step above regular joint venture brands like Volkswagen or Toyota. This clever positioning catered to Chinese consumers’ dual desires for prestige and practicality at the time.

Second, in products, it met diverse needs.

Diversity here has a dual meaning.

On one hand, Buick introduced a varied product line in the Chinese market, from sedans to SUVs and MPVs, offering a full range.

On the other hand, most Buick vehicles are ideal for both home and work use. They are practical for families and upscale for business, fulfilling diverse needs.

The Buick GL8 is the most iconic example. This MPV, with its spacious interior, comfortable ride, and luxurious features, became highly popular in the Chinese business market, earning the title of “King of Business Vehicles,” and is the go-to for many enterprises and government institutions.

At the same time, due to its spaciousness and multiple seats, many people also buy the Buick GL8 for family use.

In 2020, Buick GL8 sales reached 156,700 units, over 70,000 more than the combined sales of the Honda Odyssey and Elysion, underscoring its supremacy.

Third, in strategy, comprehensive localization for China.

Localization is an unavoidable strategy for foreign brands operating in the Chinese market.

Some foreign brands tailor their models for the Chinese market, humorously referred to by Chinese consumers as “special supply models.” For Buick, “special supply models” are not derogatory.

Over 70% of Buick’s global sales come from China, making the Chinese market the core of Buick’s survival and development. Consequently, Buick’s product development strategies revolve entirely around the Chinese market. As mentioned earlier, the Envision and GL8 were specially designed and developed for China.

These models are subsequently exported overseas, even to the U.S., truly making them “exclusive to China, exported globally.”

The more Buick relies on the Chinese market, the more thorough its localization strategy becomes, allowing for products that better suit the Chinese market and achieving greater sales. This creates a positive cycle, enabling Buick to defy its fate in China.

3. New Crisis

After setting a sales record of 1.06 million units in China in 2018, Buick began to see a decline.

The change in Buick’s China sales from 2018 to 2022

Sales data for 2023 and 2024 are not publicly available. However, some media reports estimate Buick’s sales at 518,000 units in 2023 and 361,000 units in 2024.

For accuracy, we cross-referenced these figures with sales data from Buick’s parent company SAIC-GM.

In 2024, SAIC-GM’s total annual sales, including exports, reached 673,000 units.

In 2024, SAIC-GM’s export volume was 73,000 units.

Subtracting this, SAIC-GM’s sales in China for 2024 were approximately 600,000 units.

Note that SAIC-GM encompasses brands like Cadillac and Chevrolet, in addition to Buick.

After subtracting Cadillac (110,000 units) and Chevrolet (50,000 units), Buick’s estimated sales in China for 2024 are around 400,000 units.

This indicates that sales are less than 50% of the 2018 figures.

The reasons for Buick’s sales decline in China are essentially similar to those of other foreign brands.

It’s mainly due to the rise of Chinese domestic brands and the impact of new energy vehicles.

What makes Buick unique is the impact of sales decline in the Chinese market.

Although in recent years, the sales of Volkswagen, Toyota, Nissan, Mercedes-Benz, and BMW in the Chinese market have been declining, it has not shaken the foundation of these brands.

This is because these car companies have larger global markets. For example, the Chinese market is critical for Volkswagen, but it only accounts for 32% of their overall market, while Toyota is even less at only 16%.

Proportion of Chinese sales to global sales for some brands

In contrast, Buick is different.

Over 60% of Buick’s sales come from the Chinese market.

A decline in the Chinese market directly drags down global sales.

If Buick cannot retain the Chinese market, its foundation in the automotive industry will be shaken.

Therefore, Buick is more anxious than other car manufacturers.

How should Buick “defy fate” once again?

It seems that it must continue to pursue the path to success in China: adopting a more thorough localization strategy.

However, compared to over 20 years ago, localization for foreign cars in China is not simply about lowering prices and developing products. Only by deeply integrating into China’s industrial ecosystem can there be a chance of survival.

At any time, Chinese consumers can only help those who help themselves.

Editor: Zhongxiaowen