Auto Sales in China Likely to Revive Soon, GM Says

General Motors Co. predicts the Chinese auto market will soon rebound from its worst four-month decline in 14 years, Bloomberg News reports.

GM China chief Kevin Wale tells the news service that consumer confidence is likely to rise in the second half of this year. Wale adds that China's low per-capita rate of car ownership creates strong pent-up demand. He suggests Chinese consumers may be delaying their purchases in anticipation of government incentives to boost sales in rural markets and encourage purchases of energy-efficient vehicles.

Wale says the overall auto market in China may fall short of the 7%-10% expansion he forecast in January. But he expects GM, which sold a record 2.55 million vehicles there last year, to outperform the industry.