GENERAL Motors Corp today said first quarter sales in China gained 8.7 percent year on year, setting a new record for three-months sales in the world's largest auto market.

The US largest auto company reported that deliveries during January to March totaled 745,152 units in China. The rally came after it recorded the best March sales in China with 257,944 units sold, up 10.7 percent from the same period last year.

Car makers, including GM and China's homegrown Chery Automobile Co, are struggling with slower vehicle sales in China amid the expiration of government stimulus and weaker economic growth. Fuel prices also rose to a record high on March 20, further denting market demand on concerns of higher driving costs.

Kevin Wale, president and managing director of GM China said that new models have started releasing market potential, complementing the strength of existing line-ups.

Buick-branded vehicles achieved sales growth of 3.7 percent last month to 57,082 units. Chevrolet brands saw sales rise 11 percent to a record of 54,716 units in March on stronger demand for the new Sail compact sedan and Cruze.

Luxury brand Cadillac boosted sales by 35 percent to 2,745 units last month, mostly on the back of its premium sports-utility vehicle SRX.

Shanghai GM, the flagship passenger-car venture with SAIC Motor Corp, achieved sales of 110,038 units in March with a year-on-year growth of 10.5 percent.

Minivan producer SAIC-GM-Wuling increased sales by 12 percent to 139,768 units, while commercial car venture FAW-GM sold 7,417 units last month.

Source:shanghaidaily