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Shanghai GM Expects to Sell over 1 Million Cars in China This Year

Shanghai General Motors Co.’s auto sales might reach 1.02 million units, according to a report by the China Business News. This is mainly thanks to a strong demand for its brands' vehicles and the Chinese government’s tax incentives.

Shanghai GM is a joint venture between General Motors Corp (GM) and Shanghai Automotive Industry Corporation (SAIC). SAIC even owns a 1 percent share in the American giant, thanks to the $500 million it invested into the recent GM initial public offering.

GM's total auto sales in China rose 19.6 percent in October to a monthly record of around 200,000 units. In total, the company sold 35.5 percent more cars over the first ten months of this year compared to the previous one, bringing the total number shifted so far to 1.98 million cars. GM officials expected annual figures be in the region of 2.5 million cars sold in the Chinese mainland, according to China Business News.

SAIC Motor Corp. Ltd. announced a few days ago it had acquired 15.15 million common shares in General Motors, representing a 0.97 percent stake, costing the company $500 million. GM and Shanghai Automotive Industry Corp. formed their partnership back in 1997. It is one of the leading partnerships in China, where foreign automakers are only allowed to make vehicles with a Chinese partner. SAIC is the third largest automaker in China and also the only GM distributor.

GM announced it had made $4.7 billion in net profit in the third quarter, after two more consecutive quarters of profitability. According to Kevin E. Wale, GM China Group's President and managing director, more than half of the company’s profits come from the Asian country.
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About the author: Mihnea Radu
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Mihnea's favorite cars have already been built, the so-called modern classics from the '80s and '90s. He also loves local car culture from all over the world, so don't be surprised to see him getting excited about weird Japanese imports, low-rider VWs out of Germany, replicas from Russia or LS swaps down in Florida.
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