Shanghai General Motors Co Ltd yesterday started selling its first sport-utility vehicle in China, allowing it to boost sales with an extended product portfolio into China's emerging SUV market.

Shanghai GM, General Motors Corp's local tie-up with Shanghai Automotive Industry Corp, will sell the imported Chevrolet Captiva SUV, powered by a 2.4-liter engine, at prices between 224,800 yuan (US$30,378) and 265,800 yuan in two configurations, the company said yesterday.

A more powerful version equipped with 3.2-liter V6 engine will also hit the market in the second half of next year, priced about 310,000 yuan to 330,000 yuan.

"The move marks a milestone for Shanghai GM to break into the mid-level SUV market, which is growing at the fastest pace with the largest market demand," Shanghai GM said.

Officials said the Captiva would be locally produced later to increase its price competitiveness, pending the market response.

The Captiva will help the car maker to round out its mix of products.

Sales of SUVs surged 51.7 percent to 251,700 units for the first three quarters this year in China, outpacing the overall growth of passenger cars at 23 percent, according to China Association of Automobile Manufacturers.

The market is prompting more car makers to launch new products as people's increasing income spurs demand.

The market leader in the SUV sector is Honda's CRV followed by Hyundai's Tucson. And South Korea's Kia Motor introduced its Sportage SUV two weeks ago, with prices starting from 159,800 yuan.

Japan's Nissan Motor Corp is also expected to locally produce X-Trail in China while considering whether to import another SUV model, Qashqai, next year.

Shanghai GM is facing a challenge to safeguard its position as top-selling car maker this year after slow sales in the first half.

(Shanghai Daily November 7, 2007)