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Gm's China Sales, Up by 32% in 2006
General Motors Corp. said Monday that its 2006 China sales are up by 32 percent. The automaker gladly announced the most desired increase after a long slump in their sales especially in the North American market. "Vehicle sales continued to outpace most projections as a result of unprecedented consumer demand for passenger cars," Kevin Wale, president of GM China, said in an interview.
The automaker sold 876,747 vehicles in China last year, which is up by about 208,000 units from 2005. Buick has greatly contributed to the increase in sales. The automakers revealed that its flagship Buick brand grew by 24.9 percent to 304,230 units. Buick is a General Motors brand that manufactures vehicles in the United States, Canada and China. The vehicles boast reliable Buick performance parts that spell reliability and elegance. Buick vehicles are also sold in China, Israel, North America and Taiwan.
China automotive market reflects pretty tight competition. Earlier, Ford divulged that its sales in 2006 more than doubled to 129,790 units. The auto market in China is up until now booming and prosperous. According to China Association of Automobile Manufacturers, total vehicle sales this year are expected to rise by 15 percent to 8 million, up from 7 million in 2006.
General Motors said that its largest single national market outside the United States is China. In 2005, GM overtook Germany's Volkswagen AG as China's No. 1 automaker, with an 11.8 percent estimated market share. On the one hand, GM also announced its intention to invest $3 billion in China to help revive its market share in the industry. The automaker has set up its first venture in China with a $750 million-worth factory in Shanghai. The establishment of said factory was made in 1998. Now, GM has 5 joint venture assembly plants that produce nearly all its vehicles sold in the territory. The automaker also owns an engine plant, manages auto financing venture and is swiftly expanding dealerships to improve its sales.
GM's closest rival is the fast-rising Toyota Motor Corp. The Japanese automaker is said to be trailing the right track – the very reason why it amasses a great slice of the automotive market. Toyota is determined to overtake GM as the largest automaker around the globe. The milestone in favor of Toyota is expected to happen in the next couple of years. In 2005, the Japanese automaker had just 3.5 percent of the market. However, the automaker set a target of 1 million sales per year by 2010.
In November last year, GM chairman Rick Wagoner said the company would expand further in China and would "invest ahead of demand." He is confident that strong sales growth will continue. GM said that its sales in China and other foreign markets surpassed U.S. sales for the first time last year, reaching 55 percent of the worldwide total of 9.2 million.
This year and in the next couple of years, critics are expecting a milestone in the automotive realm. It is either the great GM would lose its track further and may way for Toyota or will defend and maintain its title to prove its leadership in the field.
About the Author
Corey Putton is a 28-year old bachelor from Pittsburgh, PA who has been around cars for the better part of his life. He now works online and writes all about his passion: cars. He is also a certified mechanic.
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