Car Sales surge 50% in China, GM takes lead over VW

[MikeMike]

China Car Sales Jump Nearly 50 Percent in First Half; GM Takes Lead, Report Says
SHANGHAI, China (AP) -- Auto sales in China rose nearly 50 percent in the first half of this year, with U.S. giant General Motors taking the lead, according to industry data reported Monday.

The data from the China Association of Automobile Manufacturers showed total sales in the first half at 1.8 million units, up 46.9 percent from the same period of 2005.

Shanghai GM, General Motors Corp.'s joint venture with state-owned Shanghai Automotive Industrial Corp., or SAIC, nudged aside former market leader FAW Volkswagen, the official Xinhua News Agency reported.

Recent data have shown a continued revival in sales following a slump in early 2004. Vehicle sales rose 21 percent in 2005, up from 15 percent in 2004.

The report gave no sales figures for individual automakers. However, GM earlier reported that the its sales at Shanghai GM had jumped 49 percent year-on-year in the first half to 201,901, helped by the popularity of its best-selling sedan, the Excelle.

Next was Shanghai Volkswagen Co., Volkswagen AG's venture with SAIC, the Xinhua report said, followed by FAW Volkswagen, domestic maker Chery Automobile Co., Beijing Hyundai Motor Co., Tianjin FAW Toyota Automobile Co., Tianjin-FAW Xiali Automobile Co., local maker Geely Automobile Co., Guangzhou Honda Automobile Co. and Dongfeng Peugeot Citroen Automobile Co., the report said.

The top 10 automakers accounted for 1.27 million units, or about 70 percent of total sales, it said.

According to earlier released data, GM and its joint ventures sold 453,832 vehicles in China in the January-June period, up 47 percent from first-half 2005.

Volkswagen reported its sales jumped 30 percent in the first half, to 345,375 vehicles.

Honda Automobile Co.'s China unit said Monday that its auto sales rose 22 percent in the first half of this year to 143,519 units, from 117,751 units in January-June 2005.

Guangzhou Honda, a joint venture with Denway Motors Ltd., sold 123,512 autos in the first half, up 16 percent over a year earlier, the Japanese automaker said. Denway Motors is an investment holding company of state-owned Guangzhou Automobile Co., with shares traded in Hong Kong.

Honda's sales through its joint venture with Dongfeng Motor Group Co. rose 73 percent to 20,007, the company said.

http://biz.yahoo.com/ap/060710/china_autos.html?.v=2

 

[Ika]

yay, China's gonna have better cars!

almost every single one of the taxis I saw in china were VWs, though (of course, this was 4 years ago........)

 

[NFS4]

I guess it's cool...if you live in China

Are you going to start doing world reports for us now on car sales?

 

[MikeMike]

Originally posted by: NFS4
I guess it's cool...if you live in China

Are you going to start doing world reports for us now on car sales?

its china, it is currently the only car economy that is acutally growing afaik.

 

[aswedc]

Too bad SAIC is using all the knowledge they got from GM and VW to start their own brand. And GM will lose again.

 

[aswedc]

SAIC Motor Corp, a Chinese partner of General Motors Corp, has hired the former head of the US carmaker's China unit, as it prepares to compete with GM and other automakers by building its own brand of cars.

http://english.people.com.cn/200606/20/eng20060620_275528.html

 

[Paddington]

Originally posted by: aswedc
Too bad SAIC is using all the knowledge they got from GM and VW to start their own brand. And GM will lose again.

Not really. It's a good arrangement for GM as they supply the knowhow, designs, technology, and marketing, but leave the actual manufacturing to another company. That keeps them out of sticky messes with unions, and if sales fall, they don't have the political problems of putting workers on "jobs bank" because they can't be laid off - that's someone else's problem.

It's an arrangement they have elsewhere too. The Saab 9-3 convertible is manufactured in Austria by a Canadian supplier that also builds some Audis and Porsches. This is something that you will see more and more of. It's exactly the same as the arrangement Microsoft has with other companies to manufacture the Xbox.

The outsourcing company ripping off your designs and building their own cars is definitely a risk, but compared to having to deal with unions and the business cycle woes of excess capacity, it seems to be a reasonable one to take.

 

[Strk]

Originally posted by: MIKEMIKE

Originally posted by: NFS4
I guess it's cool...if you live in China

Are you going to start doing world reports for us now on car sales?

its china, it is currently the only car economy that is acutally growing afaik.

What about India?