GM cranks up no-frills car output in China
November 18, 2012
BEIJING (Reuters) -- General Motors 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 ($6,400).
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.
The latest Baojun opening follows Nissan Motor Co.'s launch earlier this year of the second of five models of the no-frills Venucia marque it and its local partner plan to introduce into China by 2015.
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