GM exec sees China car market growing 10 pct next year

29 October 2009 @ 10:32 am EDT

SEOUL - General Motors Co expects China's car market to grow by around 10 percent next year even without government incentives and maintain its position as the world's top car market for a long time, a senior executive said.

China's industry-wide car sales in 2010 are expected to grow to over 13 million vehicles from an expected 12.5 million this year, GM International Operations President Nick Reilly told reporters late on Wednesday.

"There is underlying growth in that market without government incentives. It's already going to grow anyway, maybe 10 percent, and there are incentives on top of that. I'd expect even if incentives come off, it will grow 10 percent per year," Reilly said.

China's government may not scrap all stimulus measures to boost car demand at once, he added.

GM's South Korean unit will not require any additional funds for operations, debt repayments or foreign exchange contract settlements for up to two years after a rights offering, although it will keep discussing longer-term financial aid for GM Daewoo with main creditor Korea Development Bank, Reilly said.

(Reporting by Cheon Jong-woo; Editing by Jonathan Hopfner)

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GM exec sees China car market growing 10 pct next year