GM Hits Record Sales in China

Sales were up 21.3% in May compared to last year.

General Motors (IW 1000/13) said on June 5 that its China sales for May hit a record 231,183 vehicles, despite a looming slowdown in the world's second largest economy.

GM's sales in the country surged 21.3% in May from the same month last year and rose 1.7% from April.

For the first five months of this year, GM sold around 1.2 million vehicles in China -- also a record -- up 11.5% year on year.

China has the world's largest car market but sales began to slow last year after the government rolled back purchasing incentives and some cities imposed limits on car numbers to ease traffic congestion and cut pollution.

China's nationwide vehicle sales rose just 2.5% to 18.51 million units in 2011, compared with an annual increase of more than 32% in 2010.

China's economy has also started to slow with growth of 8.1% in the first quarter of 2012, its slowest pace in nearly three years, affecting industries like property and construction.

State media has said policymakers are considering reviving favorable policies for the auto sector by offering subsidies to buyers of smaller vehicles in rural areas to help boost consumption and spur the economy.

Foreign car makers in China have benefited from better brand recognition and perceptions of better quality among domestic consumers.

GM sold more than 2.5 million vehicles in China last year.

Copyright Agence France-Presse, 2012

TAGS: The Economy
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