General Motors forecasts more than three million vehicle sales in China in 2014, with premium brands increasing by about 40%, Mr. Matthew Tsien, GM China’s President said on Wednesday.
GM plans to launch more than sixty new and upgraded models during the next four years in China. Mr. Tsien predicts that sales of SUVs (sports utility vehicles), compacts and luxury cars will grow particularly strongly in the world’s largest automobile market.
At a media event in Shanghai on Wednesday, Mr. Tsien said Cadillac in China certainly has the momentum.
In 2013, GM sold 50,000 Cadillacs. It is forecasting sales in excess of 70,000 for this year. The company aims to sell 100,000 Cadillacs in 2015 in China.
On Wednesday, General Motors announced it planned to make Cadillac a separate unit, based in New York and run by Johan de Nysschen. In July, Mr. de Nysschen was named brand President.
Mr. Tsien said:
“We’re very optimistic about the luxury market, we believe that the luxury market by 2016 here will become the largest luxury market in the world, surpassing even the size of luxury in Europe. With Johan, we have somebody that really is an executive that understands luxury, but he also is very, very keen on understanding what do we need here in China for Cadillac to be successful.”
20 million units sold so far
However, for mass market sales, which makes up the bulk of China’s vehicle economy, compact cars are what really matter. Mr. Tsien says cumulative compact car sales have reached 20 million units.
Volkswagen still has the edge over rivals in vehicle sales in China. In 2013, the German carmaker took the top stop, pushing GM into second place.
GM says it plans to spend $12 billion in China to increase capacity by the end of 2017.
On Tuesday, Shanghai General Motors and Shanghai Disney Resort announced they had signed an agreement that GM is Disney’s long-term strategic alliance participant in Shanghai.
“As the resort’s official vehicle, the Chevrolet brand will have a presence in Shanghai Disneyland and will provide an unparalleled brand experience to the resort’s guests. The signing of the agreement marks another significant milestone in the resort’s pre-opening development.”