October 21st, 2008
Bloomberg reports that Toyota has sold more cars in China than GM over the first nine months of this year. Sales at GM’s biggest Chinese venture, Shanghai GM, have been down two years in a row, while Toyota sales have grown at about triple the market average since opening a new Chinese Corolla plant last year. GM has long been the number two automaker in China, trailing only China pioneer VW/Audi for over a decade. (Quite an accomplishment when you consider war-born Chinese antipathy to all things Japanese.) The General’s ouster from the second highest sales spot couldn’t come at a worse time for GM. “China is very important to GM and losing share there makes life even more difficult,” said Daiwa Associate Holdings analyst Ricon Xia. “Japanese automakers know how to make cars for Chinese consumers and they have been expanding in China at a very steady pace.” Needless to say, passing GM in China means Toyota is that much closer to finishing the year as the top-selling automaker in the world, replacing GM after decades of dominance. With growth in the Chinese market slowing, GM will also have fewer opportunities to regain ground on Toyota, who opens yet another giant factory in Guangzhou province next year
