General Motors now expects its vehicle sales in China to grow by more than a fifth this year.
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The China sales forecast by GM China chief Kevin Wale was up sharply from a more conservative figure he gave Reuters earlier this month, when he said the company expected over 10% growth.
But the full year growth rate would still be far less than the 38% rise GM China posted in the first half of 2009 when its vehicle sales in the country rose to 814,442 units, an all-time first-half record.
“The market has got stronger than we thought. We had a very strong start to the year, so we think our growth (for 2009) will be a little over 20%,” Wale said in an interview with Reuters TV in the south China city of Guangzhou.
He added that General Motors’ bankruptcy in the United States had no impact on the company’s China sales.
“It really hasn’t affected us at all,” Wale said. “The first half of the year has been fantastic. Strange as it may seem (the bankruptcy) has had almost no impact on us.”
Some Chinese media have reported domestic regulators may reject Sichuan Tengzhong Heavy Industrial Machinery’s proposed deal to buy Hummer because of Tengzhong’s lack of experience in car manufacturing.
“We’re hopeful it will be done. It’s an issue that needs to be discussed with the Chinese government,” Wale said.
Reuters said GM’s China operations have been buoyed by brisk demand for its locally manufactured minivans and pickup trucks, as Beijing offers tax incentives and subsidies to bolster its nascent auto industry and support the slowing economy.
