Tags: china | luxury | car | market

China Luxury Car Market Whets the Appetite of General Motors

Image: China Luxury Car Market Whets the Appetite of General Motors
In this 2011 file photo, models pose by a Cadillac CTS coupe at the Shanghai Auto Show in Shanghai, China. (Philippe Lopez/AFP/Getty Images)

By    |   Wednesday, 24 Sep 2014 07:19 AM

General Motors expects to sell more than three million vehicles in China for the second straight year in 2014, with its premium brand forecast to grow 40 percent, but German rival Volkswagen AG has taken over the market's top spot.

Reuters reported the U.S. carmaker's China president, Matthew Tsien, as identifying luxury, SUV and compact cars as GM's three focus areas of growth in China, and reiterated plans to launch 60 new and upgraded models through 2018 in the world's biggest market.

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"Cadillac certainly has momentum here in this country. We believe the luxury market here will become the largest in the world in 2016," Tsien told a media event in Shanghai, forecasting Cadillac sales will exceed 70,000 vehicles this year, up from last year's 50,000.

The compact car market is also an important battleground for GM because it's the biggest segment of China's passenger car market, Tsien said as he announced the company's cumulative sales in China had reached 20 million units.

GM, which sells cars under brands including Chevrolet, Buick and Cadillac, lost the top spot last year in China to German rival Volkswagen AG.

The two firms have both announced aggressive expansion strategies. GM plans to invest $12 billion in China from 2014 to 2017 while VW plans to spend 18.2 billion euros ($23.39 billion) through 2018 in the country.

GM has recently introduced several new or upgraded models to beef up its product offering, including Buick Envision, Chevrolet Cruze and Cadillac ATS-L.

To boost its image in China, GM and Shanghai Disney Resort have entered an agreement under which Chevrolet will become the resort's official vehicle and will have a presence in the planned Shanghai Disneyland.

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General Motors expects to sell more than three million vehicles in China for the second straight year in 2014, with its premium brand forecast to grow 40 percent, but German rival Volkswagen AG has taken over the market's top spot.
china, luxury, car, market
306
2014-19-24
Wednesday, 24 Sep 2014 07:19 AM
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