General Motors closing in on Volkswagen in China

General Motors closing in on Volkswagen in China

United States based auto giant General Motors has posted record sales in the emerging Chinese market for the first half of the current year. They are now expecting to register a 20% overall growth for the year as it closes in on Volkswagen in China which has now become the third largest auto market in the world.

The company had an overall bad performance in the global market as it posted a loss of around USD 1.1 Billion in the first quarter. However, the performance in the Chinese market with sales of 308,722 vehicles in January-June has been impressive. This figure is an improvement over the last year sales chart by over 18.9%. The full year growth rate now released by GM is an improvement over April statement that GM expected around 10-15% improvement.

However, market experts believe that the sales figure will not exactly result in improved profits for the company considering the market is soaring due to cutting costs and low margins. China chief Kevin Wale said in a statement: “China continues to be a very solid profit contributor. It is natural for margins to compress as markets get more mature and more competition comes in. It’s our responsibility to find ways to offset that.”