General Motors will end production of the Buick Royaum luxury sedan at its Shanghai-based joint venture, as a result of a change in China's import tariff.

Under the new rules, imported kits are now taxed as assembled vehicles at 25%, rather than the 10% rate for imported components that was in place previously.

The Royaum's sales have been sluggish and according to GM China spokesman Henry Wong, Shanghai GM can better utilise its capacity, particularly with new models on the way, if the Royaum is imported.

GM has also chosen to import luxury models from the Cadillac range, obtaining approval earlier in the year to import the CTS sedan and SRX SUV.