General Motors Still Plans to Double Sales by 2015
General Motors (NYSE:GM) is on track to double its sales in China by 2015 despite a global economic slowdown that has started to hit the auto market, according to a report by Reuters citing GM’s China chief.
The Detroit automaker plans to double its annual sales to 5 million vehicles in China by 2015.
The optimistic view reflects General Motor’s outperformance in the market despite weakening demand in the region and competition from its biggest Chinese rivals including Volkswagen.
The biggest auto market has slowed in growth over the last few years, shifting down to a 3.6% gain in the first nine months of this year after jumping 32% in 2010. Several factors have been attributed to the softening, including the termination of certain tax incentives for small cars.
General Motors said it continues to gain despite the slowdown due to strong sales of its popular Buick and Chevrolet cars made at its flagship plant in Shanghai.
“We still have our plan in place to double our volume by 2015, and we are still working towards that," Kevin Wale, president of GM's China operations, told Reuters over the phone.
Wale said the automaker predicts China’s market will grow between 7% and 10% in the foreseeable future on a trend basis. Sales of passenger cars could climb as much as 10% this year, with the overall market growing 3% to 5%, he told Reuters.
In April, GM said it would up production, making some 60 new and upgraded models in China to meet its lofty goal by 2015.