General Motors says luxury-car demand growth in China will ease
June 27, 2013 Category Automotive, Automotive Metals & Minerals
General Motors, which broke ground on a new Cadillac assembly plant in China this month, forecast demand for luxury cars will grow at a slower pace in China than the total vehicle market this year. Sales of premium cars will probably increase about 4% this year, or about half the pace that the carmaker had expected at the start of the year, Bob Socia, GM China Chairman, said in Shanghai. The carmaker has said it expects total industry sales to increase about 7% to 8% this year. “Luxury car demand should hold at around 10% growth. GM’s estimate of 4% growth means they expect the segment will be pretty sluggish,” said Han Weiqi, Industry Analyst with CSC International Holdings in Shanghai. GM aims to more than triple Cadillac sales in China to 100,000 by 2015 as it brings out a new model every year until 2016. Chief Executive Dan Akerson, in Shanghai for the factory ceremony, has said the luxury brand is a priority in the firm’s plan to invest USD11 billion in China until 2016. The carmaker aims to win 10% of China’s luxury market by 2020. Luxury-vehicle sales rose at more than twice the pace of the total passenger-vehicle market last year, research firm LMC Automotive said. It will take some time for GM to catch up with Audi and BMW in luxury sales, Akerson said. Rising consumer incomes and growth in manufacturing capacity will help GM achieve its target of selling five million vehicles in China by 2015, Akerson added.
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