According to a recent disclosure by Bloomberg, GM’s sales in the Chinese market in October once again gained double-digit year-on-year growth; for several months, discounts have been the driving force behind growth, especially the microfabrication of SAIC-GM-Wuling’s production.

Rapid growth momentum

In October this year, GM’s sales in China increased from 199,641 vehicles last year to 220,412 vehicles, an increase of 10.4% from the same period last year, which to some extent continued the high level of 15% increase in September. In contrast, the current year's sales of GM in the United States increased only 1.7% year-on-year; the overall passenger car market in China saw a 4.2% decline.

Sales of Shanghai GM, which produced the Buick and Chevrolet brands, rose 4% year-on-year to 103,309 vehicles. SAIC-GM-Wuling, which produces Wuling Sunny Micros, contributed 111,957 units of sales, an increase of 19% year-on-year. In mid-October, General Motors announced that its cumulative sales in China this year have exceeded 2 million, and once again stressed that by 2015 sales in China will double to 5 million.

Wuling Microfabric Discount contributed outstandingly

Starting in January 2011, the Chinese government has cancelled auto sales tax deductions and tax rebates for rural areas, and General Motors and Toyota Motor have increased consumer discounts and increased competition in the industry.

The Wuling Sunshine Minivan produced by SAIC-GM-Wuling has started to cut prices from the end of May and opened a larger discount in July to attract consumers. According to the data from the China Automobile Association, under the background of the slowdown in the growth of the Chinese auto market, cumulative sales in the first seven months of the year have fallen by around 10% year-on-year. Wuling also saw a drop in sales in July before it drastically stimulated the market.

According to Klaus Paur, executive director of Synovate Motoresearch's Synovate Markets Information & Automotive Research Co., Ltd., in Shanghai, “Wuling has given a substantial price reduction in order to maintain the original level of government concessions, which has an unexpected impact.”

Last year, the total sales volume of General Motors in China was 2.35 million, of which SAIC-GM-Wuling occupied nearly half. This year is expected to maintain this situation.

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