GM sales hit monthly record

• Source: Gasgoo
• [09:08 February 11 2011]
• Comments

General Motors Co Wednesday said its vehicle sales in China, the world's largest auto market, hit a monthly record high of 268,071 in January, though annual growth was much lower.

GM Wednesday said its sales in China in January climbed 22.3 percent from a year earlier, a much smaller increase than the 97 percent growth seen in January 2010 when sales totaled 219,192 vehicles.

The company estimated its market share in China at 14.7 percent.

GM sold more cars and trucks in China last year than it did in the United States for the first time in the company's 102-year history. An expansion of sales into provincial cities helped the company sell 2.35 million vehicles there in 2010, up 29 percent.

But even that fast growth lagged the market, which expanded by a third to exceed 18 million vehicles sold. Sales of passenger cars also rose by a third, to 13.7 million vehicles.

Car sales have surged in China over the past two years after the government cut sales taxes and offered subsidies to buyers of smaller, fuel-efficient vehicles.

A move by Beijing to counter traffic problems by hiking license plate fees prompted many car buyers to rush into showrooms before the change took effect. That policy change, plus the much larger base of total sales, has prompted analysts to forecast that sales growth will slow somewhat this year. But double-digit income growth appears to still be spurring sales across the country.