General Motors Co.’s (GM) focus is now on its biggest market, China, with its target to launch as many as 20 new or upgraded models within a span of 2 years. They include clean energy vehicles in order to capitalize on the future trend in the auto industry. The company’s advanced research center in Shanghai will work to meet this end.

GM’s confidence in the Chinese market is backed by its surging sales in the country. 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 January, GM’s sales grew 22.3% to the monthly high of 268,071 vehicles. However, the sales growth was far less than that experienced in the same month last year (97%), when it totaled 219,192 vehicles. The automaker’s market share in China reached 14.7% during the month.

The company operates two auto manufacturing ventures in China, one with state auto groups SAIC Motor and the other with FAW Group. The SAIC auto venture saw a whopping 46% rise in sales to 131,944 cars in the month under study. On the other hand, the FAW Group Corporation joint venture sold 3,334 units of light-duty commercial vehicles in the country.

Car sales in China had been boosted by government incentives such as cut in sales tax and subsidies in order to lure buyers towards smaller and fuel-efficient vehicles. However, the government scrapped most of the incentives at the end of last year. Despite this, the country’s auto market is set for a 10%–15% growth in 2011.

Besides GM, Ford Motor Co.’s (F) has been pursuing a major expansion plan in China. Since 2009, the automaker has invested $510 million in the country. Ford anticipates 70% of its sales growth to come from Asia Pacific and Africa region in the next 10 years, mostly from China and India.

In 2010, Ford’s sales in China escalated by 40% 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 2009. Meanwhile, Ford’s commercial vehicle venture in China, Jiangling Motors Corp., reported an impressive 56% rise in sales to 178,999 units.

 
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