GM China will sell more cars than its parent company in the U.S.

Article by Christian Andrei, on October 22, 2010

General Motors’ sales in China will surpass that of its parent company in the US, according to an Autocar interview with company boss Kevin Wale. He said that the success of GM’s domestic brands, which include Wuling and the newly launched Baojun, means that they are being targeted to export more cars.

He also talked about the possibility of manufacturing them outside of China. Currently, Wuling’s ultra-cheap trucks are being sold in Egypt, Colombia and Equador.

However, if the demand in China for these trucks increases even by a very small margin, it would mean that there exists a business model to make the trucks in China.

If there is a global demand for the Baojun’s low cost model range, then GM will export them. However, it’s likely that these exported models will be sold under a different brand name, such as Chevrolet or Wulin.

Wale expects that the total Chinese car market would continue to expand. In his estimation, the market will top out at more than 17 million vehicles this year and will increase to 19 million for 2011.

He attributes this growth in China to government support, its citizens’ love for cars, increasing incomes and an expanding urban population.

Wale also estimates that by 2025, there will be over 200 Chinese cities with over one million inhabitants. In comparison, the US only has nine cities that exceed the one million mark.

Topics: gm, china, sales

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