GM says ready to compete in China mass car market

Updated: 2010-11-12 10:01


Twitter Facebook Myspace Yahoo! Linkedin Mixx

HONG KONG - General Motors Co will launch its new Baojun brand cars this month to capture growth at the low-end of the Chinese market, competing with domestic makers such as Geely, Chery and BYD, said its China chief on Thursday.

The Baojun brand, which is made by GM's SAIC-GM-Wuling Automotive Co joint venture, will be introduced later in November and is scheduled to hit the market next year, said Kevin Wale, president and managing director of GM's China operations.

GM, the battered US auto giant, made inroads into the mass car market in China in January by rolling out the Chevrolet New Sail autos, made by its China venture with SAIC Motor Corp.

"The Baojun will be a full range of products that is targeting the low end of the segment," Wale told Reuters.

Sales of the low-end segment of China, the world's largest auto market, are around 5 million units or nearly one-third of China's total sales, he estimated.

The mass car market has been dominated by homegrown auto makers including Chery Automobile, Geely Automobile Holdings Ltd and Warren Buffett-backed BYD Co Ltd.

GM says ready to compete in China mass car marketReal estate sector shows signs of cooling
Related readings:
GM says ready to compete in China mass car market GM, SAIC to team up in India
GM says ready to compete in China mass car marketGM hopes China sales to increase
GM says ready to compete in China mass car market GM expects 2m units for 2010
GM says ready to compete in China mass car market SAIC, GM to boost co-op in new energy vehicle
"We will compete against the Geelys, the Cherys and the BYDs with the Baojun brand," Wale said.

Wale would not give a price tag for the Baojun brand cars but the New Sail was priced as low as 56,800 yuan.

GM plans to export Sails to Chile and other Latin American countries but Baojun would initially focus on the China market.

China has become the largest single market for GM since the first half of 2010, when it surpassed its home market in terms of volume.

Wale expects GM's China sales could reach 2.3 million units this year, up about 26 percent from 2009, occupying 13.5 percent of the China market.

GM is in the final stage of talks to sell equity to long-time Chinese partner SAIC in conjunction with its landmark initial public offering, two people familiar with the matter told Reuters.


Paper's Digest

China bags Asiad team tennis title after 24 yrs

Wimbledon semifinalist Li Na led host China to capture the team tennis title on Tuesday at the Asian Games, accomplishing her Asiad tour with three consecutive victories.

China rate rises no panacea to curb inflation: PBOC adviser

European Edition


Russian possessed with TCM

Born into a family of doctors, Maxime became interested in Traditional Chinese Medicine (TCM) at the age of 12, after hearing about TCM theories such as health preservation and recuperation.

Acupuncture takes stab at UNESCO list

Acupuncture and Peking Opera have been selected as candidates for UNESCO intangible cultural heritage status.

The wedding coach comes back to life

A groom carries his bride from a wedding coach in Xuchang, Henan province, Nov 11, 2010. Produced a local factory, various original hand-made wedding carriages were displayed on the streets, attracting young people chasing fashion and an environment-friendly lifestyle.

Mounting inflation pressure tests policy makers
Chinese vice president to visit four nations
Chinese, Russian presidents meet in Seoul on co-op