Record Sales in China for GM in First Half of 2012 image

Thursday, July 5th, GM declared sales in China reached 1.42 million vehicles in the first six months of this year, up 11.3% from 2011.

In June alone GM managed to reach sales of 213,495 units, up 11.3% from the same period last year, setting a new record for the month.

“Despite signs of slowing economic growth in China, demand for GM products rose in all key segments in the first half of the year,” GM China Group president Kevin Wale said in the statement. “We expect sales growth to remain steady in the second half, driven by demand in China’s interior provinces.”

China’s economy, including the auto sector, began to weaken after the government ceased purchasing incentives in 2011 and after some cities imposed limits on car numbers in order to cut pollution and ease traffic congestion. Economy in China record only 8.1% growth during the first quarter of 2012.

Everyone expected the government to revive the market and boost car sales by offering subsidies to customers, but instead another major city in China was forced to limit car numbers to ease traffic woes. In 2011 auto sales in China increased only 2.5% to 18.51 million units, compared to a 32% increase reached in 2010.