Global auto makers and their Chinese partners are rolling out dedicated local brands and targeting buyers in smaller towns and cities as growth in the world's largest auto market slows from its breakneck pace. Vehicle sales are anticipated to rise to 23 million units by 2015, up 27 percent from their level in 2010, a senior Chinese government official said on Monday in Shanghai, just ahead of the official opening of the Shanghai Auto Show.
That figure suggests a slowing growth rate because it is lower than the 32.4 percent rate in 2010, in which China's sales totalled 18.1 million units. Car sales alone rose a third last year to 13.8 million units. Those sales secured the country's position as the world's biggest auto market for the second consecutive year. Su Bo, vice minister of the Ministry of Industry and Information Technology, disclosed the forecast at a seminar being held ahead of the Shanghai Auto Show, which opens to the press on Tuesday.
But while the official growth rate may slow, the outlook is positive enough for Chinese car makers and their overseas partners to make substantial investments on the mainland. General Motors Co said it plans to more than double its sales in China to around 5 million units by 2015, up from 2.35 million units in 2010, its China head said on Monday.
GM China chief Kevin Wale said GM planned to introduce around 60 new and upgraded models in China over the next five years, around 12 of them being Buicks and 15 Chevrolets.
"We have set some aggressive goals with our five-year plan," Wale said in statement. "We are confident that we will achieve every one of our goals." Susan Docherty, GM's international operations vice president of sales, said GM's Chevrolet brands sold 1.1 million vehicles globally in the first quarter, up 15 percent from a year earlier. "We expect the Chevrolet sales to more than double over the next five years," Docherty said of Chevrolet international vehicle sales, which include China.
GM said late last year it expects exports of its China-made Chevrolet Sail to more than quadruple this year due to rising demand for low-cost quality vehicles in emerging markets. GM is also showing its Baojun 630 sedan, a midsize vehicle developed locally using GM technology. The car is the first of GM's Baojun brand that will be available nation-wide. Officials at PSA Peugeot Citroen say they too are convinced China's car market will continue to grow by about 10 percent a year for several years. In a move that illustrates the importance of China, Citroen unveiled its new DS5 premium five-seater car on Monday.