Rays of recovery - GM sales in China roar to monthly record
Monday, 12 Oct 2009
It is reported that General Motors Corp vehicle sales in China roared to a monthly record last month as government stimulus measures boosted demand for autos.
General Motors Corp said in a statement that sales of the United States car maker which is reorganizing toward a leaner company after emerging from bankruptcy protection, more than doubled to 181,148 units last month from a year earlier. For the first nine months of this year, GM sales in China totaled 1.29 million units a jump of 55.6%YoY.
Mr Kevin Wale president & MD of GM China Group said "Sales continue to surpass forecasts as nearly all market segments experience growth. A major market driving force this year has been first-time car buyers in China second, third and fourth tier cities."
The central government launched a pilot program to provide subsidies and also cut the vehicle purchase tax for consumers who sell their cars to purchase new ones. These moves powered China auto sales to grow 29% in the first eight months of this year, making the country one of the bright spots in the gloomy global auto markets.
In contrast, GM sales in the US in September crashed 45% despite the government's cash for clunker program that gave American consumers money if they trade in old models for a new car.
GM, the largest overseas auto maker in China, said the vibrant sales this year helped it to an estimated market share of 13.4% by last month.
