GM sales in China rose 10 percent to 193,878 units in June 2011

Article by Christian Andrei, on July 6, 2011

General Motors Co.’s sales in China declined in April and May of this year but the trend has reversed as its June sales had risen by 10% to 193,878 units, attributed to the rising demand for Buick and Chevrolet passenger cars.

GM’s sales fell by 2.7% drop in May while it had a 5% drop in April. On the other hand, Ford Motor Co. sold 44,442 units in China in June, an 11% increase from the same period a year ago.

Meanwhile, General Motors said that Shanghai General Motors Corp., its passenger car joint venture with SAIC Motor Corp., increased sales by 41% to 101,524 units. Buick sales increased by 48% in June compared to last year.

Chevrolet sales climbed by 34%. But then, GM's commercial micro-van partnership with SAIC Motor sold just 88,207 units, an 11% decrease.

This venture produces the top-selling vehicle in China, the Wuling Sunshine minivan. Industry sales of commercial vans have not been impressive since China had ended sales incentives for these vehicles at the end of 2010.

For the first six months of 2011, GM had sold 1.3 million vehicles in China. GM believes that its share in China is 14.7%; it has set a target to double its sales here to 5 million units by 2015.

Yankun Hou and Ming Xu, analysts at Nomura International Hong Kong Ltd., wrote a note to clients, saying that it’s likely that China's passenger-vehicle sales will have "strong sales growth" in June as buying sentiment recovers and the production at Japanese carmakers goes back to normal.

The March 11 earthquake in Japan had caused passenger car sales on the mainland to drop for the first time in over two years in May. The China Association of Automobile Manufacturers said that deliveries in May declined by 0.1% from the previous year to 1.0 million units.

Topics: gm, china, sales

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