General Motors Co. (GM) revealed that its sales in China grew 22.3% to the monthly high of 268,071 vehicles in January. However, the sales growth was far less than that experienced in the same month last year (97%), when it totaled 219,192 vehicles.
Shanghai GM, GM’s China flagship venture, saw a whopping 46% rise in sales to 131,944 cars in the month under study. Meanwhile, sales of mini-vehicles rose 11% to 132,658 units. The automaker also sold 3,334 units of light-duty commercial vehicles through its joint venture with state-owned automaker FAW Group Corporation.
Car sales in China have been boosted by government incentives such as cut in sales tax and subsidies in order to lure buyers towards smaller and fuel-efficient vehicles. Recently, the country witnessed a spurt in demand triggered by the government’s policy to increase license plate fees that prompted many people to buy cars before the policy is implemented.
In 2010, GM sold more cars in China than in the U.S. for the first time. Its sales soared 29% to 2.35 million vehicles in China compared with 7% to 2.22 million vehicles in the U.S.
In contrast, GM’s hometown rival, Ford Motor Co.’s (F) sales in China grew 40% in 2010 driven by higher sales of Focus compact and Fiesta subcompacts. The automaker’s joint venture, Changan Ford, sold 403,283 vehicles, an increase of 34% from the last year.
Meanwhile, Ford’s commercial vehicle venture in China, Jiangling Motors Corp., reported an impressive 56% rise in sales to 178,999 units.
FORD MOTOR CO (F): Free Stock Analysis Report
Zacks Investment Research
