General Motors, the largest foreign automaker in China, aims to concentrate on luxury sales in the world’s largest car market.
Due to increasing demand for premium vehicles, GM wants to grow Cadillac sales in China in the next three to five years. In order to compete with BMW and Audi, GM plans to expand its Cadillac range, GM China president Kevin Wale said. The automaker wants to increase production capacity in the country by as much as 40 percent in the next two years, as well as import more models.
“Luxury-car sales will continue to grow faster than the overall passenger-car market, driven by increasing wealth,” Wale said in a Bloomberg Television interview. He added that the luxury segment is “a key area of focus for us over the next three to five years.” Wale said GM must be prepared for the next wave of luxury demand from an emerging class of successful entrepreneurs in China.
In the first 11 months of 2011, GM sold 2.35 million cars in China, up 8.2 percent compared to the same period last year. GM’s plans for China are very ambitious, as the carmaker wants to double deliveries to 5 million units by 2015. Most of the growth is expected to come from new luxury and SUV models.