Vehicle sales are anticipated to keep rising in China in 2011 as the country consolidates its position as the world’s biggest market.
It overtook the US in 2009 with sales surging 45% to 13.6 million units.
Monthly figures this year have witnessed double-digit percentage growth and experts are predicting sales may rise roughly 30% to about 17 million vehicles for the full year.
Such explosive growth might be curtailed however in 2011 because a tax cut on new vehicle purchases is expected to end. But a rebate on cars with small engines will stay in place, as the government seeks to encourage people to drive more fuel efficient vehicles.
“We think the fundamentals of growth in China are very strong,” said Kevin Wale, president and managing director for GM China, citing an economy that is expected to expand 8% or more annually, high consumer confidence and a global economy that is starting to rebound.
“To be honest, the Chinese have developed a love affair with the car.”
By the time 2010 is over, Mr Wale said, GM will have sold about 2.3 million cars in China, while next year sales will climb about 10% to more than 2.5 million.