General Motors sales in China rose 27.2% last year, and it plans to introduce 10 all-new or upgraded models in 2005.
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According to the Associated Press (AP), GM said its share of the world’s fastest-growing automotive market rose to 9.3% in 2004, up from 8.5% in 2003 – its share ranks second behind Volkswagen whose share in 2004 was 26.4%.
AP said Shanghai GM, GM’s flagship joint venture with Shanghai Automotive, sold a record 252,869 vehicles in 2004, a 25.7% increase from 2003. SAIC-GM-Wuling, GM China’s joint venture with SAIC and Wuling Automotive, also had a record year with 235,188 sales.
The news agency noted that GM China also expanded its import lineup in 2004 to meet strong demand for premium and luxury vehicles – it introduced the Saab brand in May and Cadillac a month later. GM’s brands in China also include Chevrolet, its most popular global brand, and Buick.
The Associated Press said passenger car demand in China skyrocketed in 2002 and 2003 – demand was 76% higher in 2003 versus the year before – but the market began to cool off in the middle of 2004 when the Chinese government took steps to rein in what was becoming an overheating economy.
In a recent report, Standard & Poor’s said China’s 2004 growth rate for auto sales to the end of November was 17% – S&P expects the growth rate this year to be about 10% to 15% over 2004, AP added.
“Last year, China’s vehicle market moved from a state of unusually high growth to a state of steady and sustained growth,” a GM spokesman told Associated Press, adding: “We remain confident in the overall prospect of China and expect 2005 to be another positive year for GM and our domestic operations.”
