Manufacturing News

GM China boosts sales 13% in August as incentives, new entry-level sedan lure buyers

General Motors Co. said August sales in China rose 13 percent to 205,885 units, as customers purchased more microvans and GM's new brand launched sales.

The gain follows a 1.8 percent decline in July.

Deliveries of microvans rebounded after the automaker introduced discounts to offset slowing sales earlier this year. The carmaker also rolled out a new sedan, the Baojun 630, to cater to entry-level buyers.

Vehicle sales in China slowed this year after the government phased out incentives that boosted overall car sales in the last two years. Auto sales in China may rise about 5 percent this year, the China Association of Automobile Manufacturers said on July 8, slashing its previous estimate for 10 percent to 15 percent growth.

Sales by SAIC-GM-Wuling Automotive Co., GM's microvan venture with SAIC Motor Corp., rose 8 percent to 102,959 vehicles in August. The venture, which makes the Wuling Sunshine minivan, China's best-selling vehicle, cut prices starting end May and offered further discounts at the end of July to lure buyers.

Sedan venture
The U.S. carmaker's sedan venture with SAIC, which makes Buicks and Chevrolets, boosted sales 22 percent to 98,674 units, according to the statement.

The minivan venture dropped the price of its Wuling Sunshine to 28,000 yuan ($4,384) from 33,000 yuan earlier this year, according to GM.

China's passenger-car sales grew at a slower pace of 5.9 percent to 8.1 million units in the first seven months of the year after the government ended purchase incentives and cities including Beijing imposed traffic controls.

GM aims to double sales in China to 5 million units by 2015, it said at the Shanghai Auto show in April.

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