In 2010, General Motors Co. will attempt to grow "a little faster" than China's market growth, according to Kevin Wale, president and managing director for GM's China operations.
In an online briefing, GM's China chief said that its sales figures are in line with its forecast of more than 40% year-on-year growth. He predicts that GM may sell more than 1.6 million vehicles in China this year, says Automotive News.
In the first three quarters, GM has been outperforming China's overall market. Compared to Volkswagen AG and others, GM sold 55.6 percent more vehicles in China in the first nine months of the year, leading a 34.24 percent gain in the overall market.
In 2008, GM had only sold 1.09 million vehicles in China. Last January, China sales overtook the United States as the world's biggest.
You may be wondering why the growth in China is phenomenal. Well, that's because of the incredible government incentives, including huge cuts in sales taxes on small cars. This program will expire by the end of the year; however, Wale remains optimistic about the future of the China car market.
He believes Beijing will come up with additional steps to support the industry, a major contributor to the country's economy.
He expects sales to still grow in 2010, supported by a government that will take whatever actions are needed to continue the market stability. He believes that demand in smaller cities would ensure some growth momentum.