GM China sells 2m units in year

US General Motors said Thursday that it had become the first international automaker to sell 2 million vehicles in a year in China, which is now the world's largest auto market.

The strong China sales further underlined the country's growing importance to GM, where it has been the market leader for five years and where the carmaker's international operations are now based.

"This is another important milestone for General Motors in China," GM China's president and managing director, Kevin Wale, said in a statement.

China overtook the US last year to become the world's largest automarket and is on track to hold onto the top spot this year, analysts say.

GM announced Wednesday that it had agreed to closer ties with partner Shanghai Automotive Industry Corporation (SAIC).

SAIC Group, which sold 2.7 million vehicles last year, has reportedly said it is closely watching GM's $13 billion initial public offering in the United States.

But a spokeswoman for the Chinese automaker declined to comment Thursday on reports that it would like to invest in the listing, saying only, "We hope their IPO will be successful."

General Motors on Wednesday said it seeks to raise $13 billion from a new stock offering as part of the auto giant's efforts to break away from government ownership.

The initial public offering, one of the largest in US history, will consist of 365 million shares of common stock, with the estimated price of the offering of common stock ranging from $26 to $29 per share, the company said.

Agencies