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The strong rise for the year comes in spite of a 2.3 percent
year-on-year fall in GM China sales for December to 434,799
vehicles, according to a spokeswoman, who did not elaborate on
the reason for the decline.
Sales of GM's budget Baojun brand, developed for China with JV
partners SAIC Motor Corp Ltd <600104.SS> and Guangxi Automobile
Group Co Ltd, that surged nearly 50 percent last year helped
drive growth. GM has pledged to introduce more models in the
fast growing sport-utility vehicle and multi-purpose vehicle
segments by 2020.
Global automakers like GM recorded stronger-than-expected sales
last year in China, the world's largest auto market, buoyed by
the country's move to cut taxes on small-engine cars.
Demand for cars surged throughout the second half of last year
as consumers sought to buy ahead of a planned expiry of the tax
incentive at the end of 2016.
The tax cut, which halved the purchase tax on cars with engines
of 1.6 liters or smaller to 5 percent, is now being rolled back
and will rise to 7.5 percent this year before returning to 10
percent in 2018 - a move analysts say will prevent a steep drop
in sales growth.
GM produces vehicles in China through a joint venture with SAIC,
the country's largest automaker, as well as a three-way tie-up
with SAIC and Guangxi Automobile Group, formerly known as Wuling
Motors.
(Reporting by Jake Spring; Editing by Himani Sarkar)
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