General Motors (GM) and China's SAIC Motor have renewed their joint venture for another 20 years, extending the partnership until 2047 as the two companies continue their operations in China's automotive market while expanding exports of China-developed vehicles to overseas markets.

The renewed agreement follows a restructuring of GM's China operations, which included plant closures, the discontinuation of some models, and efforts to restore profitability after years of declining market share. The extension also reflects GM's continued operations in China for revenue, manufacturing and vehicle development despite ongoing geopolitical tensions.

The partnership builds on nearly three decades of collaboration that began in 1995 and led to the establishment of the SAIC-GM joint venture in 1997. Both companies said the renewal reflects their confidence in the long-term potential of the Chinese automotive market amid changes in the industry.

Under the new agreement, the two shareholders will further integrate technology research and development, supply chain operations and global market resources while supporting the joint venture's electrification, technology development, local innovation, global expansion and long-term operations.

GM said the renewed venture will result in more vehicle development being carried out in China to better meet local consumer preferences. SAIC said the partnership would allow Chinese-developed technologies to reach global markets.

The joint venture plans to launch at least 30 new energy vehicles, including battery electric and hybrid models, by 2030. It will also expand cooperation with China's technology ecosystem by accelerating the development of intelligent cockpits, advanced driver-assistance systems and autonomous driving technologies.

As part of its overseas expansion strategy, SAIC-GM will begin exporting China-developed Buick and Cadillac models to markets including the Middle East, Africa, South America, Mexico and other parts of Asia. The China-developed Buick Electra series will be the first to be exported, with the Buick Electra E7 SUV becoming the joint venture's first premium new energy vehicle to be exported from October.

GM said the joint venture has no plans to export vehicles to the United States because of tariffs and national security policies affecting China-developed automotive technology.

The renewed strategy also includes a greater focus on Buick and Cadillac in China, while Chevrolet sales in the domestic Chinese market will be discontinued. Chevrolet models will continue to be produced for export through GM's separate joint venture with SAIC and Wuling.

SAIC Chairman Wang Xiaoqiu said both companies would combine their technology, branding, global distribution and local resources to create additional business opportunities.

GM was among the first international automakers to establish a presence in China through its partnership with SAIC. However, its annual sales in China have fallen sharply from a peak of more than 4 million vehicles in 2017. SAIC data showed that GM-related affiliates sold about 2.17 million vehicles last year.

The decline has been driven by the growth of domestic manufacturers such as BYD and Leapmotor, which together accounted for nearly 70% of China's passenger vehicle market by June, supported by their electric vehicle technologies. Buick, Chevrolet and Cadillac have also lost market share to Chinese brands because of a limited range of competitive electric vehicles.

GM began restructuring its China business in 2024 after experiencing market share losses and recorded more than US$ 5 billion in non-cash charges related to its Chinese joint venture. Having previously generated annual profits of around US$ 2 billion in China, the company started posting losses earlier this decade before returning to profitability following the restructuring, recording several consecutive profitable quarters.

Despite declining sales, GM-related operations still accounted for nearly 45%, or around one million vehicles, of SAIC's new vehicle sales during the first seven months of the year.

Industry analysts said the renewed partnership reflects continued cooperation between international and Chinese automakers.

An independent automotive analyst, said China's research and development capabilities and domestic market would increasingly support GM's global operations.

David Zhang, General Secretary of the Shanghai-based International Intelligent Vehicle Engineering Association, said the extension was necessary because GM contributes global manufacturing capacity and established overseas sales channels, while SAIC has access to China's supply chain.

He added that GM's global production network could help export SAIC-built vehicles to overseas markets, particularly North America, although current trade restrictions remain a challenge.

"Even if Chinese cars cannot enter the American market, the Chinese market is large enough that Chinese and US carmakers can continue to cooperate amicably," Zhang said.

A researcher at a market research firm, previously said international automakers could remain competitive against Chinese manufacturers only by collaborating with Chinese suppliers.

The renewed agreement also comes as other global manufacturers, including Honda and Volkswagen, continue to strengthen or renew partnerships with Chinese companies despite declining market share and profitability in China.

SAIC recorded sales of 2.38 million petrol and electric vehicles between January and July, compared with BYD's 2.2 million electric vehicles over the same period.

The company also owns the MG brand, which recorded the highest sales of China-built vehicles in Europe for 11 consecutive years and exceeded 300,000 units last year. However, MG was recently overtaken by BYD in Western Europe as Chinese electric vehicle manufacturers continue to expand internationally amid slowing demand and shrinking margins in the domestic market.

Industry observers said SAIC-GM remains a joint venture project between China and the United States and has been involved in China's automotive industry since the country's economic reforms.