GM Plans to Increase Exports From China by Almost 70% This Year image

GM plans to boost exports from China by almost 70% this year, due to increased demand for the China-made low-cost vehicles.

GM, which is the biggest foreign car maker by sales in China, plans to export 130,000 China-made low-cost vehicles, an increase of 77,000 vehicles from last year, due to high demand for its Chevrolet Sail in the other markets.

“While GM’s primary philosophy is to manufacture where it sells, we find that product exports are necessary to meet global market demands when GM does not have local manufacturing capabilities for a particular vehicle,” Bob Socia, the head of GM in China, told Reuters in an email.

Chevrolet Sail was developed with Chinese partner SAIC Motor and it quickly became a success since it was launched in January 2010. It is the only foreign brand vehicle to be priced under 60,000 yuan ($9,800) in China. Last year the Sail accounted for 80% of GM’s exports from China, helping the US automaker compete with South Korean, Japanese and South American brands.

From January to April GM exported 33,623 vehicles, surpassing Geely and taking the second place as China’s largest auto exporter after Chery, which exported 46,234 vehicles.

Source: Reuters