General Motors Co’s (GM) joint venture with SAIC Motor Corp in China plans to spend 100 billion yuan (US$16 billion) by 2020 as global automakers step up investment to compete for market share in the world’s largest car market.
Shanghai Genral Motors Co targets to have a market share of more than 10 percent in five years, Shanghai Genral Motors Co vice president Wang Yongqing (王永清) said in Shanghai on Sunday this week. A significant portion of the investment is to be for expansion, including capacity additions, GM China president Matt Tsien (錢惠康), said yesterday.
Foreign automakers have been among the most enthusiastic factory builders in China, with Volkswagen AG and Hyundai Motor Co among those that have announced plans or are already building in the country. Toyota Motor Corp ended its self-imposed ban on new plants last week with plans to invest about ¥52.5 billion (US$441.7 million) to augment annual production in China, while Ford Motor Co has committed to spend US$4.9 billion on new plants and models through this year.
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The expansion is taking place even as passenger vehicle sales rose at a slower pace in China last year, as economic growth moderated and more cities imposed purchase restrictions.
China still represents a significant growth potential for GM, CEO Mary Barra said at the same event, held at a Cadillac plant. The automaker expects industrywide growth in the Asian nation of 6 percent to 7 percent for the next few years, she told reporters in Shanghai yesterday.
Shanghai GM plans to introduce more than 10 new-energy models and seeks to sell 1 million units each of its Chevrolet and Buick brands, Wang said on Sunday. The automaker is to start selling 10 new or refreshed models annually as the investment is made through 2020, he said.
China is to soon emerge as the world’s largest market for luxury cars, Tsien said yesterday. The automaker needs to do more work to expand the dealer network for Cadillac in China, he said. The company expects Cadillac’s growth in the country to outpace the average rate of growth in the luxury-vehicle segment, Tsien said.
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