GM ups capacity in no-frills China car market
BEIJING (REUTERS) - General Motors Co. and its local partners, intensifying competition in China in the no-frills car market, on Sunday formally opened another plant for its low-cost Baojun brand.
The plant in the southern China city of Liuzhou is Baojun's second producing cars priced as low as 40,000 yuan (S$7,868).
Much of the competition in China's auto market is focused on the cheaper end of the market where foreign-led joint ventures targeting China's emerging middle class are piling pressure on indigenous entry level manufacturers like Geely and Chery.
By 2013, some 65.6 million household in China will have annual incomes of 60,000 yuan or more - a level deemed sufficient for a family to buy a no-frills car, according to an estimate by U.S. consulting firm Alix Partners.