In a global sales war between GM and Toyota, China is a decisive battlefield

Shanghai. January 29 (Gasgoo.com) – Last week, General Motors and Toyota announced their global sales of 2007. GM reported global sales of 9,369,524 Wednesday; later in the day Toyota Motor Corp. told the Associated Press in Tokyo that its total was 9.366 million -- about 3,000 fewer than GM's.

 

However, Automotive News, the Detroit-based industry trade publication, disputed GM's final tally, on the ground that GM’s total includes sales of Wuling vehicles in China made by SAIC-GM-Wuling, of which GM holds only 34 percent stake. Subtracting Wuling, the sale report came up with a total of 8,885,599 for GM.

 

GM attributes its sales growth to emerging markets like, China, India, Russia and Brazil.

 

The automaker announced sold 1.03 million vehicles in Chinese market last year, an increase of 18.5 percent from one year earlier.

 

By contrast, though Toyota sold less than half a million vehicles in Chinese market, it posted a phenomenal 60 percent year-on-year growth. That means if the two auto makers carry the same momentum into 2008, their sales in China will change the balance next year.  

 

GM has two major joint ventures in China: Shanghai GM (GM holds 50 percent stake) and SAIC-GM-Wuling (GM holds 34 percent stake). But GM has been seeking to increase its stake in the three-way joint venture and negotiations have been on and off for some years. If GM increases its stakes successfully, it will have more legitimacy to add the Wuling brand cars into its global sales.

 

Last year, Shanghai GM reported 479,427 vehicle sales in Chinese market and SAIC-GM-Wuling reported 548,945 vehicle sales, in Chinese market, up 20 percent from one year earlier. The leading manufacturer of mini-vehicles plans to sell 620,000 mini-vehicles in 2008, senior company official has said.

 

The three-way automaker has taken 43 percent of China's mini-vehicle market by 2007, while it held only 37 percent of the market one year earlier, Shen Yang, general manager of SAIC-GM-Wuling told a dealership conference.  

 

SAIC-GM-Wuling builds and sells both commercial vehicles and passenger vehicles, including Wuling brand minivans, Wuling brand mini-trucks and the Chevrolet Spark mini-car.

  

SAIC-GM-Wuling was founded in June 2002 by GM China, Shanghai Automotive Industry Corp. Group (SAIC) and Liuzhou Wuling Automotive Co., Ltd. (Wuling Automotive). SAIC has a 50.1 percent stake, GM China a 34 percent stake and Wuling Automotive a 15.9 percent stake. SAIC-GM-Wuling is based in Liuzhou, Guangxi Zhuang Autonomous

 

Toyota also has two joint ventures operating in China. FAW-Toyota sold 282,615 vehicles and Guangzhou Toyota sold 170,294 vehicles last year.

 

To increase the output of its popular model Toyota Camry and accommodate the newly-introduced Yaris, Guangzhou Toyota plans to open a second plant. And the second plant project was approved by Chinese authorities last November.

 

Guangzhou Toyota will have a total capacity of half a million per annum after the completion of its second plant in Guangzhou, according to Chinese media report. The second plant will start production in the third quarter next year.