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CAMBRIDGE, Feb 19 (Reuters): Industry concerns about an overcrowded Chinese automobile market are "overblown", General Motors Corp's top executive in China said yesterday, and he predicted the country's car market will grow 10-15 per cent annually for the foreseeable future.
China is the largest overseas market for GM, the world's largest automaker, and earnings from the country have helped ease the blow from growing US health-care costs and losses in European automotive operations.
Massive investments being pledged by global automakers to boost production capacity in China, and slower growth in the country's car market, have sparked some concern about overcapacity.
Sales of vehicles-trucks, buses and cars-increased 16 per cent in 2004 in China, after growth of about 40 per cent in 2002 and 35 per cent in 2003, GM said.
Foreign automakers including Ford Motor Co, Nissan Motor Co Ltd and Toyota Motor Corp are investing more than $13 billion in China to triple annual production to about six million cars by 2010.
While the competition in China is fierce, GM is well positioned in the market with a diverse line up of vehicles.
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