GM sales in China to hit one million vehicles

General Motors Corp. expects to sell more than one million vehicles in China for the first time ever this year, chief financial officer Fritz Henderson said Wednesday.

But the company has nevertheless lost market share in the quickly growing Chinese market, he admitted.

Henderson, during a presentation to securities analysts, said Chinese demand for new vehicles is up 21 percent and should top 8.4 million units in 2007, a four-fold increase from the two million vehicles sold in 2001.

GM's own sales are up substantially again this year, he added, though the market share of the US giant, struggling against foreign competitors on its home turf, is lower.

"We're on pace for our sales in China join the million unit club," Henderson said, calling China now GM's second most important market after the United States. "It's also profitable growth," he said.

Henderson predicted GM's earnings from its Chinese ventures would increase from 157 million dollars to around 230 million dollars this year.

GM has stakes in several different operations in China, among them Shanghai Automotive and a joint venture with Wuling Automotive.