Foreign brands bank on robust demand

• Source: Global Times
• [08:11 February 12 2011]
• Comments

GM sold 22.3 percent more vehicles in China in January than a year earlier. As of the end of January, GM had a 14.7 percent market share in China.

Surge in Chevy Sail exports

In January 2010, GM rolled out the Chevrolet Sail, jointly developed with its partner and domestic industry champion SAIC Motor Corp in China.

The first foreign brand with a price tag below 60,000 yuan mark ($9,100) became an instant hit in the small car segment, collecting an annual tally of 125,625 units, roughly 12 percent of GM's overall passenger car sales in the country in 2010.

Perceiving a demand for quality and affordable small cars in other emerging markets, GM exported 5,000 of the Sail models from China in the first 10 months of last year, mostly to Chile. The volume is estimated to jump to 20,000 units or more this year, Johnsson said.

"It's a strategic decision to take advantage of a vehicle that's hot right now and establish out channels in those markets. If we don't feed that demand in those market places, maybe these markets will look elsewhere," he said.

So far, GM has only exported fully assembled Sail cars from China. It plans to start shipping components and have them assembled in select markets in South America this year and later in other developing countries, he added.

"We have a pretty ambitious plan on the exports side. It's far beyond the numbers that we are looking at this year," Johnsson said.

Reuters