In Spite of Challenges, GM Continues to Ride China Growth Story

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The Chinese auto market continued its unabated growth in the first quarter of 2011, despite threats such as the withdrawal of government incentive programs and the potential supply chain disruption from the tragic Japanese tsunami. General Motors ( GM ), which competes with players like Toyota ( TM ), Honda ( HMC ), Ford ( F ) and Daimler (ETR:DAI) in the Chinese auto market, reported record March and first quarter sales in China.

GM's sales in China outstripped estimated industry sales growth in Q1 2011, growing 10% from the same period in 2010 to about 685,000 units. By our estimates, GM's operations in China contribute more than 24% to the company's stock value, which we peg at $45 . Growth in GM's market share in China would add significant stock upside.

Our $45 price estimate for GM stock implies a roughly 50% upside to market price.

See our complete analysis for GM stock here



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks , US Markets

Referenced Stocks: F , GM , HMC , TM

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