UPDATE: Ford, GM Post Record High 1st Half Sales Volumes In China

U.S. auto makers General Motors Corp. (GM) and Ford Motor Co. (F) had record sales volumes in China in the first half, boosted by the popularity of their smaller models.

GM and Ford's strong sales in China in the six months ended June 30 come as the companies are increasingly turning to emerging markets, including China, for growth, as sales in the U.S. continue to decline by double-digit percentages.

Ford said Monday it sold 18,224 Fiesta subcompact sedans in China since its launch in March, exceeding its expectation. It declined to disclose its forecast.

Separately, GM said Wednesday sales of its Chevrolet Spark mini-car rose 60% in the first half to 32,065 units.

In January, China halved the purchase tax on vehicles with engines 1.6 liters and under to 5%, and also introduced subsidies for some auto purchases.

Sales of Ford-brand passenger cars in China rose 55% in June from a year earlier, while sales of its light vehicles in the U.S., which includes cars and light trucks, fell 11%.

Sales at Ford's vehicle-making joint ventures in China rose 14% in the first half from a year earlier to 197,212 units, a record for the company.

Sales at Ford's passenger car joint venture, Changan Ford Mazda Automobile Co., rose 20% in the first half from a year earlier to 140,386 units, including sales of Mazda Motor Corp. (7261.TO) cars

Ford lowered its stake in Mazda to about 13% from 33.4% in November to shore up operating cash.

GM's sales in China appear to be catching up with its sales in the U.S., which have been declining.

GM's sales in its home market slid 34% in June from a year earlier to 176,571 units, while sales in China rose 61.6% in June to 143,294 units.

For the first half, GM sold 814,442 units in China, a record for the company, while sales in the U.S. totaled 954,356 units.

Separately, Honda Motor Co. (HMC) said Monday its China sales rose 53.5% in June from a year earlier to 51,496 units. In the first half, the Japanese auto maker's sales in China rose 11.9% to 253,812 units, it said.

Sales were boosted by demand for Honda's City subcompact car, whose sales more than tripled in June to 11,878 units from 3,666 units a year earlier.

Luxury carmaker Audi AG (NSU.XE) also said Monday its first-half sales in China and Hong Kong rose 11% from a year earlier to 66,866 units. In June, Audi's China and Hong Kong sales rose 28% to 13,265 units, it said in a statement.

-By Patricia Jiayi Ho, Dow Jones Newswires; (8610) 6588 5848; [e-mail]