China in overdrive to hit record 12m car sales

South China Morning Post ^ | July 31, 2009 | Kandy Wong

[PGR88]

Mainland passenger car sales are speeding up and look set to break new records under Beijing's "cars down to the village" policy, with General Motors Corp's operations in the country already posting monthly growth of more than 70 per cent. Troubled GM, which relies on China for growth, said July sales would be about 140,000 vehicles, thanks to robust sales of the minivan made by the SAIC-GM-Wuling joint venture in Guangxi. The final figure will be announced next week.

GM China sold a record 841,442 cars in the first half, 38 per cent more than the year-earlier period.

Volkswagen China said car sales jumped 22.7 per cent in the first half to a record 652,222 units. The world's biggest carmaker, Toyota Motor Corp, sold 284,000 cars but said sales were flat compared with last year.

Analysts said July, traditionally a low season, would be the fifth consecutive month in which sales hit 1.1 million units.

"We are assuming that [the government] will continue" to offer stimulus measures in some form, said GM China president Kevin Wale. "We expect some slowdown, but not a dramatic slowdown [for the rest of the year]."

The China Association of Automobile Manufacturers raised its estimate for total vehicle sales to 12 million units from an earlier forecast of 10 million units after four months of strong growth. Last year, 9.38 million units were sold.

Under central government measures introduced early this year, villagers can get a subsidy of up to 5,000 yuan (HK$5,672) to buy a 30,000 to 50,000 yuan car.

Chongqing Changan Automobile, Ford Motor's joint-venture partner, aims to triple vehicle sales within six years to three million units by 2015 and expects rural area sales to power growth.

"From the up-to-date figures on hand, sales for July will be about the same level as June," said analyst Chen Qiaoning at ABN Amro Teda Fund. "It's also not surprising to see GM China having such a huge growth rate. Its Wuling minivan is the main driver."

In January, vehicle sales in China surpassed the United States, which was previously the world's No1 vehicle market.

China is the only growth market this year, selling 6.1 million vehicles in the first half, compared with 4.8 million units over the same period in the US.

Passenger vehicle sales reached 874,000 units in June, up 48.5 per cent from a year earlier, while total vehicle sales rose 36.5 per cent, exceeding 1.14 million units. Car sales were about 400,000 units in July last year, when the sector was affected by the global financial crisis and the Beijing Olympic Games also slowed sales.

GM China is selling its Buick and Chevrolet in the mainland market.

According to the vehicle manufacturers association, the top 10 carmakers in China are FAW-Volkswagen, Shanghai Volkswagen, Shanghai GM, Beijing Hyundai, Dongfeng Motor (SEHK: 0489), Chery Automobile, BYD, FAW Toyota, Guangzhou Honda Automobile and Geely Automobile Holdings (SEHK: 0175).

GM vice-president Nick Reilly, who oversees the group's Asia-Pacific business, said last month that GM China would build its ninth manufacturing plant in three to four years and plans to meet its five-year goal of doubling annual sales in the country to two million units.

The carmaker sold 1.09 million vehicles in the country last year, up 6 per cent from 2007.

[nyconse]

Isn’t that just great. We are building up a Communist country, while tearing down our own. Hope all the free traitors are happy. Every country in world, protects their own, except the USA. First clothing, steel, IT, now autos. Hope it makes you proud. As I have said countless times, a country that manufactures nothing, is nothing.

[BigCinBigD]

“GM China is selling its Buick and Chevrolet in the mainland market.”

Are booster seats standard or optional equipment?

Never buy GM again.

[mowowie]

Never.

And i was a big GM guy in my youth.

[BigCinBigD]

So was I. My Dad always owned Chevy. The first Four vehicles I ever owned were GM. But no more. I hope over the next couple of years Chrysler gets it's act together. I really want a Ram 1500 4X4 before I die.