General Motors Company (NYSE:GM) reported vehicle sales in China jumped 15 percent to a record monthly high last month, helped by the Chinese government’s move to cut taxes for smaller vehicles.
The company announced retail sales in the initial 10 months of this year jumped 2.9 percent from last year to 2.8 million units, marking another record.
The numbers give a bright spot forauto market in China that has struggled amid an economic slump in the second biggest economy of the world. The company’s China President, Matt Tsien stated in a press release that the recently revealed government incentive for car purchases boosted buying sentiment beginning in October.
The country has introduced a slew of supportive strategies, including cutting the sales tax to 5 percent on vehicles with 1.6-litre engines or lower, to increase auto-sales. The tax-cut came into effect from 1st of October.
Other key global automakers, including Honda also reported double-digit sales for the month of October. Vehicles in the 1.6 liter and under category represents about 70 percent of the overall sales in China.
In separate news, leaders at United Auto Workers are urging members to approve a proposed agreement from GM, following a handful of factories refused it in the primary rounds of voting. The union official said that a costly strike is expected to occur in case the deal fails, according to a report published by the Wall Street Journal.
Employees at several components plants and 4 assembly plants voted in favour of the contract, though workers at one transmission plant and two other assembly plants have refused it, leaving the possibility of a rejection.
A work strike would come at a time when the company has speed up the production of SUVs and trucks to keep up with the demand in the U.S.
