GM Expects More Growth In China

Bertel Schmitt
by Bertel Schmitt
gm expects more growth in china

If you think that China’s car market (they are expecting to sell between 16 and 17m units this year) is a bubble about to burst big-time, then GM will disagree strongly with you. “The market is still quite solid. As you know this year is going to be a strong year. We will see continued growth next year, but growing at a range between 10 to 15 percent,” said Kevin Wale of GM China to Reuters.

The Wall Street Journal is also in agreement: “Year-to-year growth may be slowing, but auto sales were still up 48 percent in the first half from a year earlier. Few analysts see anything other than continued expansion of car ownership in China in the coming years.”

GM has a lot riding on China. China is officially GM’s largest market.

Soon, GM will be building new factories in China to keep up with the demand: “When you’re selling about 2 million units a year, a 10 or 15 percent growth is a new assembly plant,” said Wale. And 15 percent growth on top of 17m would be close to 20m cars in China next year.

Join the conversation