Major carmakers report big gains in China

Three major automakers posted strong domestic growth in China for the month of July, despite the country’s economic slowdown and increasing competition, The Wall Street Journal reported. General Motors (GM.NYSE), Honda (HMC.NYSE, 7267.TYO), and SAIC (600104.SH), the largest domestic carmaker by sales, all saw sales increase in July compared to a year earlier, with Honda’s sales more than double what they were last year. Analysts said that strong demand for minivans produced by a joint venture between GM and SAIC helped to boost sales for those companies, while Honda’s year-over-year growth reflected poor sales last year following Japan’s earthquake and tsunami. Other automakers did not fare as well. Mazda (7261.TYO) reported a drop in sales and Toyota (TM.NYSE, 7203.TYO) over the weekend announced that it was recalling more than 160,000 of its RAV4 SUVs in China. Overall, vehicle sales in China were up 2.9% in July, compared to 3.4% last year.