GM may have big problems at home and it may be at the centre of speculation that it will go into alliance with Renault, but the firm is continuing to perform well around the world and especially in China.

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GM consolidated its position as China’s top vehicle seller in the first half of 2006, as booming demand helped the domestic market to strong growth, according to Reuters.


GM, which overtook Volkswagen last year to become China’s biggest vehicle seller, sold 453,832 units in the six months ended in June, up 47% from a year earlier, the company said on Tuesday.
Market share was for the period was put at 12.5%, up from 10.8% a year earlier.


Reuters said that Volkswagen posted slower growth of 30.2 percent for the period, as sales rose to 345,375 vehicles.


The report added that China has yet to release national vehicle sales for the first six months of the year. But vehicle sales rose 30.8% to 2.97 million units in the first five months of the year, with car sales up 44.2% to 2.11 million units.

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“GM and our China operations benefited from a stronger-than-expected domestic vehicle market in the first half,” Kevin Wale, president of GM China Group, said in a statement.


“We expect vehicle sales in China to remain steady through the end of 2006 and top last year’s record. GM and our joint ventures are on track to once again outpace the market, with annual sales growth of more than 20%.”


GM, whose brands include Buick, Chevrolet and Cadillac, said sales for its China joint venture with Shanghai Automotive Industry Corp. Group (SAIC) rose 49.1% in the first half to 201,901 units.