GM says H1 China car sales nearly tripled

SHANGHAI, July 18 Reuters repeated that General Motors, the world's largest vehicle maker, said on Thursday it sold almost three times more cars in China during the first half of 2002 than in the same period a year ago despite increased competition.

But its sales in one of the world's fastest-growing auto markets were still just a fraction of competitor Volkswagen (Frankfurt:VOWG.F - News), which sold almost three times the number of cars as GM during the first six months of the year, state media said.

GM has two joint ventures rolling out its own brand of cars in China and credited new products aimed at private car buyers for sales nearly tripling to 47,818 in the first six months of the year.

GM gave no comparative figure for the first half of 2001, but has said it sold about 65,000 vehicles in China last year.

"We had a very successful first half despite growing competition across the board," GM China chairman Philip Murtaugh said in a statement.

Competition has heated up since China entered the World Trade Organisation last year, gradually bringing down trade barriers to the highly-protected car market.

Foreign carmakers have been scrambling to set up more joint ventures in China this year, hoping to cash in on a potentially huge market thanks to rising incomes and a large population.

Volkswagen, sold 122,000 vehicles during the first half, the Liberation Daily newspaper quoted company executives on Thursday as saying.

Volkswagen, which has produced cars in Shanghai since 1984, holds about 50 percent of China's passenger car market.

GM's Shanghai-based car plant accounted for the vast majority of the U.S. producer's sales with 45,687 Buick sedans and compacts sold in the first half.

Jinbei GM, its truck-making venture in the north which produces Chevrolet Blazers, "quickly became a strong competitor in the SUV (sport utility vehicle) segment", the statement said without giving a figure.

GM also owns 34 percent of a mini-vehicle plant in the southwest but that does not produce GM-branded cars at present.