China overall auto sales to rise 7%-10% next year

Dow Jones Newswires (Beijing) - Overall auto sales growth in China is likely to accelerate next year, rising about 7%-10% from 3%-5% growth this year, a senior General Motors Co. (GM) executive said.

In an interview Sunday, Kevin Wale, head of GM's China operations, said an acceleration in auto sales growth would be due to an improvement in overall economic conditions, an expected "normalization" of inflation and a possible gradual easing of monetary policy.

However, Wale also said it is still very difficult to forecast demand for automobiles in China. Auto makers' forecasts have been proven wrong almost every year, he said.

"That is why we try not to focus too much on the numbers," he added.

Nonetheless, "underlying market demand is strong," he said.