GM sells 2.35 million vehicles in China during 2010

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From the Wall Street Journal:

BEIJING—General Motors Co.’s sales in China grew 28.8% in 2010 to a record 2.35 million units, making the U.S. firm the first foreign company to surpass the two-million mark for annual vehicle sales in China, GM said in a statement Tuesday.

The growth comes after the Detroit-based auto maker launched a series of new models in China, which is now its largest market, though sales growth slowed from the 67% jump in 2009, when GM sold 1.83 million vehicles in China.

GM said Tuesday its sales in India, another major emerging market beyond GM’s traditional strongholds of North America and Europe, jumped 59% to 110,804 vehicles.

“Over the next 12 months, GM will continue to grow its presence in China through the introduction of cutting-edge products like the Chevrolet Volt, and the start of sale of the Baojun passenger car brand,” said Kevin Wale, president and managing director of GM China Group, in the statement.

He said GM will continue to grow its manufacturing capacity in China, but didn’t elaborate.

Last year, GM rolled out 11 new or upgraded models in China, which helped its growth in the country, he said. Sales of Chevrolet, one of GM’s best-selling brands in China, surged 63.4% to 543,709 vehicles last year, the statement said.

Shanghai General Motors Corp., GM’s joint venture with SAIC Motor Corp., sold 1.03 million units in 2010, up 42% to become China’s first passenger car maker with annual sales of more than a million units, the statement said.

SAIC-GM-Wuling Automobile Co., GM’s mini-commercial-vehicle joint venture with SAIC Motor and Wuling Automobile Co., sold 1.23 million vehicles last year, up 15.6%, accounting for about 40% of China’s mini-commercial vehicle market, the statement said.

However, GM’s sales growth last year likely lagged behind the average sales growth of China’s auto makers, which, according to an estimate by the China Association of Automobile Manufacturers, likely sold a total of 18 million vehicles last year, up 32% from 2009.

The semi-official industry group also said China’s auto sales growth may slow to 10% this year, or around 20 million vehicles, because the government has withdrawn some incentive programs, and more local governments are likely to introduce measures to ease traffic congestion.

The purchase tax for passenger cars with engines of 1.6 liters or less rose to 10% from Jan. 1, after the government ended an incentive policy under which the tax was 7.5%.

To combat traffic congestion, the Beijing municipal government said it will only issue up to 240,000 license plates for new cars microvans in 2011, about a third of the 750,000 expected for 2010. The municipal government also said it will restrict new licenses to registered Beijing residents, and cars that don’t have Beijing license plates will be barred from entering the main city area during rush hour.

Analysts expect other first-tier cities to follow Beijing’s lead in restricting car purchases.