TopNews China

General Motors, the American auto giant announced a 67 percent surge in sales in china last year. The announcement on Monday reported more than 1.8 million cars and trucks were sold in the country.

China is becoming ever important to the company as its sales at home dropped further. GM has been expanding its share in the Chinese auto market as last year its sales figure was higher than that of the overall market. The market share of GM's Chinese ventures rose
1.3 percentage points to 13.4 percent.

Buicks, inexpensive small vans and pickups lead the sales in the country. An optimistic president and managing director of GM China Group, Kevin Wale said "The industry outlook is strong and we expect more growth, albeit on a somewhat slower pace."

He further said, "As China asserts itself as the world's largest vehicle market, our domestic operations will be counted on to deliver solid results."

GM said in a statement that sales for Shanghai General Motors Corp increased 63% to 727,620 units in 2009. SAIC-GM-Wuling Automobile Co, another tri venture involving GM, reported 64% increase in sales to 1.06 million units and a joint venture for new light commercial vehicle with FAW Group Corp sold 34,510 since August last year.

One of the reasons for the growth in china's auto industry are the efforts by the Chinese government to boost domestic demand, like purchase tax was reduced to half for vehicles with small engines.

Automakers expect passenger vehicle sales to grow 15% next year. According to J. D. Power & Associates estimates, the sales for the year 2009 in the country could add up to 13 million cars or 50% higher from the previous year.

Describing the rapid growth in Chinese auto market, Kelly Sims Gallagher a professor at Tufts University and the author of a book about the Chinese auto industry said "There's no question that China will become the world's largest auto market as long as the economy keeps growing."

There are only 35 cars per 1,000 people in China compared with 850 cars for the United States. "There is a lot of room for growth," said professor Gallagher.

Other major auto maker leading in market share such as Volkswagen, Changan, Shanghai Automotive Industry Corp. and Hyundai have entered into the race to up their share and benefit from the growing demand.

GM performance in the home market was however much weaker. Sales for the overall US auto market dropped to 10.5 million from a peak of 16 million vehicles annually. While GM November sales for china almost doubled to 177,339 vehicles it dropped 1.7% to 150,676 for the United States.

As GM received $50 billion from the U. S government it received complaints that it's focus is too global and it should try to grow in the home market.

Rebuffing the concerns that the GM is too global in focus, Rebecca Lindland, an analyst with IHS Global Insight said "Regardless of where they make the money or make the vehicles, the profits come back to the U. S.," and GM's growth would help the company pay back the loan it has received from the government. "China has been a focus for GM for a number of years," she said.