Russia playing a big part in General Motor’s first half performance 0
Don’t be mistaken, the Chinese market is still very strong for General Motors are growth figures have waned over the past few years. That slow down in China has been made up for recently with the sharp rise of Russian sales. Middle class Russians have generated a larger interest in General Motors vehicles. A General Motors spokesman had actually said that the reputation of the company in Russia was not the strongest, but recent sales show that times and fortunes are changing.
From January to June 2012, General Motors have sold 136,400 vehicles in Russia alone. That represents a tremendous increase of 21 per cent from the same time period in 2011. When comparing sales in China, those figures are deemed very small as sales resulted in figures of 1.4 million. Sales in China have increased by 11 per cent when comparing the same time period from one year ago. In 2010, General Motors sales were growing at a rate of 50 per cent year upon year.
Sales for General Motors, the world’s number one car producer have now hit a total of 2 million from January to June of this year. That represents an increase of 200,000 when comparing the same time period in 2011. It appears that General Motors are well on their way to achieving their target remaining as the world’s number one car producer this year, fending off the likes of Toyota and Volkswagen.
General Motors needs the markets of Russia and China to perform well as they continue to make a loss in the European region overall. There is a huge over capacity problem at the moment for mass car producers with the Euro Zone crisis playing a huge part in crumbling the car industry. It is clear that the company need more of a well balanced strategy to achieve their targets.
The battle is far from over however. General Motors have still to fight off Volkswagen worldwide. They are facing a battle with Ford in America too, in what is proving to be a frustrating period of General Motors in that respect. General Motors are also not experiencing the best of times in India and other parts of that region, finding it difficult to make their presence felt. The positives outweigh the negatives, for now. General Motors need the success of the Russian market to continue.