UPDATE 1-GM sees China sales above 3 mln vehicles in 2015

* GM sees 2015 China sales over 3 mln, vs 2010 over 2 mln

* Expanding capacity at existing China plants

* Confident of continued growth in China market

* GM-SAIC India venture to launch first vehicle next year
(Adds quotes from GM China chief, details, background)

By Fang Yan and Edmund Klamann

SHANGHAI, April 12 (BestGrowthStock) – General Motors [GM.UL] expects
to sell more than 3 million vehicles in China in 2015, confident
of continued growth in the world’s largest auto market where it
has said it would sell more than 2 million cars this year.

GM, which competes with Volkswagen AG (VOWG.DE: ) and other
global giants in China as well as abroad, also plans to roll out
25 new or upgraded models in China in 2010 and 2011, Kevin Wale,
president and managing director of GM’s China operations, said on

“We are very bullish about the long-term growth. We have seen
very strong underlying demand across most demographic segments
and most income segments across China,” Wale told a briefing for

China has been a bright spot in the global auto industry
downturn due in large part to Beijing’s stimulus measures,
including aggressive tax incentives for purchases of small cars.

GM, which operates manufacturing ventures with SAIC Motor
Corp (600104.SS: ) and FAW Group, has been a major beneficiary of
those policy incentives. Its China auto sales in the first
quarter of this year nearly matched its full-year sales in 2005.

Wale said he expected the auto sales gap between China and
the United States to widen this year, after the two markets
reversed places last year and China took the top spot, with GM
alone on target to sell more than 2 million vehicles in China for
the year.

GM has been expanding capacity at its existing China
facilities in the past several months to meet robust demand, Wale

He added that the company was still considering the
possibility of building a new greenfield plant in China but had
not yet made any final decision on the details.

He said GM’s joint venture with SAIC to explore the India
market expected to roll out its first vehicle in that country in

Stock Research Tools

UPDATE 1-GM sees China sales above 3 mln vehicles in 2015