GM China President Kevin Wales.
General Motors has sold more than 2 million vehicles in China for the second year in a row – and despite the slight slowdown in the market – now the world’s largest – the U.S. maker appears set to post another yearly sales record.
The American auto giant reached the 2-million-unit-mark more than two weeks ahead of the date last year when it became the first global automaker to sell 2 million vehicles in China, GM reported
“This is another outstanding achievement for GM in the world’s largest vehicle market,” said Kevin Wale, president and managing director of the GM China Group. “Our key brands and many of our key products have continued to experience record demand despite intense competition.”
GM’s SAIC-GM-Wuling joint venture, which is targeted at customers in smaller cities and rural China, sold its 1 millionth vehicle in China this year on Oct. 14. In addition, demand in China this year for the Buick brand has risen 24%, with Cadillac up 73% and Chevrolet posting an 18% increase.
China is now the second-largest global market for Chevrolet – which has been pressing hard to expand outside its traditional base in North and South America. Sales surged 411% since the brand was introduced in China in 2005 – this year expecting to post another record after reaching 544,000 in 2010.
Sales in China and the other regions making up GM’s International Operations, or GMIO – which excludes Europe and the Americas – now account for 28% of total Chevy sales, up from 1% in 2000.
“We do not intend to rest on our laurels,” said Wale. “We look forward to building on our success through the ongoing introduction of great new products and services for the people of China.”
In particular, the maker is pushing to expand its position by tapping nascent demand in smaller so-called Tier III and IV Chinese cities – most of which still have populations in excess of 1 million – noted Susan Docherty, chief of sales, service and marketing for GMIO. While the initial economic boom in China has been concentrated on the Pacific coast, in cities like Beijing and Shanghai, it is spreading westward into the Chinese interior.
And as incomes reach the critical level, usually the equivalent of $6,000 U.S., “Sales start to skyrocket,” says Docherty.
That, many analysts believe, will keep the automotive market growing despite a recent slowdown in the overall Chinese economy.
Even with that slowdown, GM and its joint ventures in China last month posted their second-highest monthly numbers ever as domestic vehicle sales totaled 240,244 units, an increase of 15.3% from the same month last year and 16.7% from August 2011.
Demand for the Cruze, the Chevrolet’s best-selling model in China and around the world, was up 34.5% to 23,212 units. The new Sail family generated sales of 18,299 vehicles, which was an improvement of 55.4% from September 2010.
Cadillac set an all-time monthly sales record of 2,818 units – an increase of 39.7 percent year on year. Demand for the SRX likewise set a record, totaling 1,936 units. Also performing well was the SLS, which registered sales of 631 units.
Paul A. Eisenstein contributed to this report.