GM, the biggest foreign carmaker in China, increased its sales with 68 percent to 230,048 vehicles last month. That is a record in China. They already sold 71 percent more vehicles this quarter then last year. GM China even surpassed the US deliveries for the first quarter of 2010. In 2009, the US was the most important market for GM, with a sale of 2 million vehicles compared to 1.83 million vehicles in China.
GM aims to increase its China sales to 2 million vehicles this year, by introducing ten new models. This increase doesn’t mean a growth for GM China. Rising sales are encouraging the carmakers to add production capacity in China, even as the growth rate may slow down this year. Because of the crises there were some serious consequences for GM, but since last year GM is doing it much better.
The Chinese automotive market transcends gradually the American market in volume. The American market stays the most important in turnover. Chinese costumers prefer smaller cars, like the Hyundai Elentra or Buick Excelle and the Chevrolet Cruze of GM. Also Toyota, the largest carmaker of the world, increased its sales in China.
The most important reason, in my opinion, that causes the rise of the sales in China is due to the Chinese government. They halved the sales tax on new vehicles and they set aside subsidies for customers who replace their old models. Because of these measures, the government helps stimulating the demand and protects their own market.
http://www.tijd.be/nieuws/ondernemingen_industrie/GM_boekt_recordverkopen_in_China.8900153-434.art
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