Chinese Consumers Now Buy More Automobiles than US Consumers

For the first time in history, automobile consumers in China bought more units than those in the United States in a given six-month period. China is now the world's largest market for automobiles; one of the reasons why General Motors Co. is expecting a 45 percent increase in sales through 2014. From January through June, 2010, GM, along with venture capitalists from China, managed to sell 1,209,138 automobiles in China. In comparison, the United States' sales total was 1,069,577 units sold.

North American President for GM, Mark Reuss stated recently that GM is enjoying first quarter profits for 2010 of $865,000,000. Ed Whitacre, chairman and CEO of GM added that the company has already paid back bailout funds of more than $6.7 billion to the United States Treasury Department, and another $1.4 billion to the Canadian government. GM plans to invest more than three billion dollars during the next 12 months building new and enhancing existing manufacturing facilities. And a large part of this phenomenal growth is due to Chinese automobile consumption. In fact, China is quickly becoming GM's top targeted market, even above its home country, the U.S..

GM is undergoing a massive corporate restructuring at present. During the first six months of 2010, the company experienced a 14.3 percent growth rate in U.S. sales, demonstrating its dedication to bouncing back fully from the bankruptcy it filed in 2009. However, the 14.3% U.S. growth rate in sales pales in comparison to the massive 48.5 percent sales increase in China over the same time period. China also accounts for the biggest market for the German auto giant Volkswagen AG.

Although the Chinese have just out-purchased the Americans for the first time, China has been the planet's largest automotive market since 2009; and it has been consistently increasing its lead over all other countries. In June, Chinese demand for automobiles slow a bit, but GM still reported a 23.2% increase in sales up to 176,486 units. Chinese demand for GM vehicles is especially increasing for the Chevrolet, Buick and Cadillac lines; specifically the Chevy Cruze, Buick Excelle GT and the SRX from Cadillac.

GM has reported that it will release 70 new vehicles through 2014, the majority of them to be designed and manufactured by standards that have been and are being heavily affected by the decision-making processes of Chinese automobile consumers. Of course, Russia, India and Brazil are also demonstrating significant growth rates in terms of automobile consumption.

Whitaker concludes, "GM and its joint ventures are in the midst of refreshing their product lineup with new models such as the Chevrolet New Sail hatchback and Buick Excelle GT small car. Combined with the established lineup, GM and its joint ventures expect this to help drive their continued sales growth in the second half of 2010."