Bloomberg News

GM China Sales Growth Accelerates on Higher Demand for Cadillac

July 03, 2013

General Motors Co. (GM:US), the largest foreign automaker in China, reported sales growth in the country accelerated last month, helped by an increase in deliveries of its Cadillac vehicles.

Sales in June rose 11 percent from a year earlier to 236,207 units, after a 9.4 percent increase the preceding month, GM said today. The Detroit-based company delivered 1.57 million vehicles in the first half, up 11 percent.

GM, which expects to sell 3 million vehicles in the world’s largest auto market this year, is investing $11 billion there by 2016 on new plants and products. It plans to build four new assembly plants to boost its annual capacity to 5 million vehicles by 2015.

Sales of Cadillacs surged 69 percent to 4,244 units last month on demand for the SRX crossover and XTS sedan. They increased 35 percent for the first six months.

GM broke ground last month on a Cadillac assembly plant in China, even as it predicts a slower growth pace for luxury vehicles than the total vehicle market this year.

Sales of premium autos in China is likely to increase about 4 percent this year, or about half the pace that the automaker had expected at the start of the year, GM’s China chief Bob Socia said in Shanghai last month. GM expects total industry sales to increase by 7 percent to 8 percent this year.

Sales of Buick-branded vehicles rose 9.5 percent to 62,430 units last month and first-half deliveries climbed 17 percent. Chevrolet sales gained 7 percent for the month and 6.1 percent for the half.

Deliveries of Wuling minivans, which account for almost half of GM’s China sales, increased 10 percent in June and 8.8 percent for the first six months.

To contact Bloomberg News staff for this story: Alexandra Ho in Shanghai at aho113@bloomberg.net

To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net


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