GM expects 10% sales growth in China this year

General Motors expects more than 10 per cent growth in its vehicle sales in China this year, the automaker's China Chief Kevin Wale said yesterday, up from a previous forecast. GM has posted strong sales growth this year in China, its second-largest market, even as a steep global industry downturn compelled it to file for bankruptcy in June with a US federal court. 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 auto industry and support the economy. "We will have more than 10 per cent growth this year for sure," said Wale. In the first six months of this year, GM's vehicle sales in China rose 38 per cent to 814,442 units, an all-time first-half record. It gave no figures for the month of June, after reporting a 75 per cent rise in May sales and 50 per cent growth in April, improving significantly from a 6.1 per cent gain in 2008. Nick Reilly, GM's President for Asia Pacific, had said late last year that he expected the China car market to be flat to slightly up in 2009 and that the US auto maker would do a little better than the market. Car sales growth in China slowed to single digits in 2008 for the first time in at least a decade as a decelerating economy and natural disasters dented auto sales. But demand has been picking up sharply since February, with overall car sales rising 46.8 per cent in May, and China has overtaken the United States as the world's largest car market. Wale said he was not sure how long the explosive growth would last but said vehicle sales in the country would total 10.4 to 10.5 million vehicles this year. Last year's tally was 9.38 million vehicles. "It's hard to predict how long the growth will last as a lot was driven by the economic stimulus package. But at the moment we see no sign of the growth slowing down," said Wale. SAIC-GM-Wuling, GM's commercial vehicle tie-up with China's top automaker SAIC Motor, sold 524,598 vehicles in the first six months of the year, up 49.9 per cent from a year earlier, data provided by GM showed. Shanghai GM, its flagship car venture with SAIC, sold 288,843 vehicles during the period. GM gave no comparative figures, although data from China's official industry association indicated that would represent a 25 per cent year-on-year increase. Keep up with the latest business news from the region with the daily Emirates Business 24|7 newsletter. To subscribe to the newsletter, please click here .