2002 GM China Sales Soar

SHANGHAI, Jan 20. 2003; Reuters reported that General Motors Corp said on today its China ventures sold 264,101 vehicles in 2002, a 325 percent surge from 2001, and it intends to launch at least four models in the world's fastest-growing auto market this year.

Part of the stunning rise is due to GM's acquisition last year of a mini-vehicle manufacturer in southern China, whose sales were included by the U.S. auto titan in its overall figures.

Sales at GM's original car plant in Shanghai leapt 90 percent to 110,763 sedans and executive wagons in 2002, giving GM close to nine percent of the market for passenger cars, the world's largest automaker said in a statement.

"Growth potential remains enormous in China. We will respond with an unprecedented series of product launches and continue to seek additional opportunities," Phil Murtaugh, chairman and chief executive officer of GM China, said in the statement.

GM now has an overall share of 7.7 percent of China's vehicle market, up from a mere 2.7 percent in 2001, the statement said.

Jinbei GM, the U.S. giant's truck-making venture in the northeastern city of Shenyang, saw sales soar 110 percent in 2002, the statement said without giving figures.

"Jinbei GM is on track for an even better year in 2003," it said.

Last year, GM acquired a mini-van and mini-truck venture, SAIC-GM-Wuling, which it said sold 146,736 vehicles in 2002. No comparison figure was given

Global giants such as Toyota and Volkswagen AG are looking to expand in China, a market which has blossomed in recent years alongside rising incomes.

Volkswagen, China's leading automaker, has about 40 percent of the passenger car market. Its vehicle sales jumped about 40 percent in 2002 to about half a million.

Many are gearing up for a pitched battle with auto sales forecast to rise steadily. China had only 1.5 cars per 1,000 people in 2001, far below the global average of more than 90.