Profits Increase by 12% in China for General Motors Company (NYSE:GM)

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General Motors Company
General Motors Company

Increased demands of Wuling-mini and Buick of General Motors Company (NYSE:GM) resulted in an increase in sales by 12 % in China last month. October’s total sales went up to the figure of 282,446 units. General Motors reported that its Buick deliveries went up by 15% whereas sales of Wuling minivans went up by 14%.

General Motors China sold 3 million vehicles in October this year; China is the biggest auto market in the world. Promotions of General Motors Cadillac, sport utility vehicles and Chevrolet are all set to become Volkswagen AG’s competitors, which currently is the leading international automaker in China.

Wuling sales contribute to half of the total GM sales in China; the 14% increase resulted in the sales of 135,687 units. Chevrolet of General Motors sales went up by 8%, which is equal to 59,006 vehicles in total whereas Cadillac deliveries went up by 69% which is equal to 4,202 vehicles in total.

However, General Motors became the leading international automakers sellers in China last year. Deliveries of Volkswagen nudged up in the initial three quarters and 2.35 million sales were made whereas GM sales were 2.31 millions. Rolls-Royce and Mini also made fewer sales in comparison to Volkswagen.

General Motors is focusing on i3 City Car that is powered by a battery; it is also investing in i8 Sports car that is Plug-in-hybrid, maker. The i8 Sports is being manufactured to introduced the “i” brand, which will be eco-friendly. This initiative gives the company an edge over its competitors, Mercedes-Benz and Audi; however, both these companies in comparison are ahead in sales.

Earlier this year in April at the auto show in Shanghai General Motors revealed its expansion plan in China; the company is set to invest $11 billion through the year 2016. General Motors has at least four new plants for assembly planned that are capable of giving production capacity boost up to at least 5 million vehicles annually; this is double the number of vehicles that were sold last year in the US.

In Tuesday’s premarket, shares of General Motors Company (NYSE:GM) went down by -1.25% ($37.00).

 

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