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.
Photo: Bloomberg
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.
Taiwanese firms have increased investment in the Philippines in recent years as Manila’s ties with Washington deepen and global supply chains continue to shift away from China, an expert at the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. The Philippines had not been among Taiwanese investors’ top choices in Southeast Asia, CIER Taiwan ASEAN Studies Center director Kristy Hsu (徐遵慈) said at a seminar in Taipei. However, Taiwan’s investment in the country has grown significantly since the COVID-19 pandemic, reaching US $257 million last year, a high in recent years, she said. Although Taiwan’s total investment in the Philippines still lags
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