Amid the rising wealth in China, General Motors Co. aims to focus on luxury sales in the next three to five years as the demand for premium vehicles is expected to go up. Kevin Wale, GM’s China president, will execute an expansion plan for its Cadillac lineup to attempt to entice BMW and Audi consumers to buy a GM vehicle.
Wale said that GM, the largest overseas automaker in China, seeks to raise production capacity in the country by up to 40% within the next two years.
In a Bloomberg Television interview, Wale said that the growth of luxury-car sales will be faster than the overall passenger-car market partly due to more Chinese people become wealthier.
The No. 1 brand in China when it comes to sales is Audi. Second place goes to BMW while Mercedes-Benz ranks third. Research firm LMC Automotive said that in the first 11 months of the year in China, Cadillac had a 51% increase in sales to 23,106 vehicles.
But it remains to be far behind the leaders. GM is working to raise sales of its premium cars in order to meet the demand from a growing group of successful entrepreneurs in China. LMC Automotive added that China may surpass Germany as the world's second-largest market for luxury vehicles in 2011, coming after the U.S. at No. 1.
Wale said that the overall auto sales in the market in China could increase by 7% to 10% in 2012. On the other hand, the demand for trucks and mini-commercial vehicles will recover from a likely drop this year to increase by 5% in 2012.