General Motors Co. CEO Dan Akerson told reporters in Beijing that the automaker will boost its investments in China and launch 20 new and upgraded models by 2012 to tap demand in the world's largest auto market, adding that GM will continue to make China one of its priorities.
Akerson said that he is relying on emerging markets including China to help fuel growth after an initial public offering of more than $20 billion in November 2010.
GM estimates it has a market share of nearly 15 percent in China and posted record sales in the nation in January 2011, driven by demand for its Buick Excelle and Chevrolet Sail cars. Going forward, GM will have to adjust its product lineup in China to compete, analysts said.
Stimulus measures and economic growth helped China's vehicle sales surge 32 percent in 2010. The automaker increased sales in China by 22 percent to 268,071 vehicles in January 2011.
John Zeng, an analyst with J.D. Power Asia Pacific in Shanghai, said that GM is “pretty well positioned” in China in terms of product portfolio and strong local partnerships, especially with SAIC. Zeng adds that what GM may need to do is to produce sport-utility vehicles locally, as it is the fastest-growing passenger car segment in China.