SATURDAY, OCTOBER 20, 2001
GM expects China sales to double from last year
SHANGHAI: US auto giant General Motors expects its sales in China this year to "more than double" from 30,000 vehicles sold in 2000 despite the global economic slump, chairman John Smith Jr. said on Friday.
China's accession into the World Trade Organisation (WTO) later this year and the gradual removal of tariffs over the next five years would significantly bolster purchases of cars, he said.
"We expect it (sales) will continue to grow at a double-digit rate for a period of years," he told reporters on the sidelines of a two-day Asia Pacific Economic Cooperation (APEC) business conference here.
"We believe China will continue to be the strongest market in the globe. With entering WTO, we believe we're set to see the vehicle retail financing which will really accelerate the progress of cars being bought for personal use. It will be a very large market."
But Smith said companies who want to invest in China must "be patient and go through the right channels to get established".
"It's not that bad. The potential of the market makes you want to work hard and be here. For large ticket-purchases such as an automobile, this is a big deal," he added.
Under WTO, China will cut tariffs on cars from 44-51 per cent to 25 per cent by 2006, phase out import quotas and open up distribution rights by 2005, eliminate local content requirements and ease other restrictions.
But analysts said local government autonomy could deter its WTO implementation by using administrative barriers to help local auto companies. ( AFP )
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