AKIPRESS.COM - The head of General Motors Co.'s China operations said Monday the Detroit auto maker expects to maintain the company's profitability levels in the world's largest light-vehicle market even amid price declines and moderating growth levels, Market Watch reports.

Matthew Tsien, in an interview, said the company is "well on track for our target" of hitting 9% to 10% margins in China on a continuing basis. By selling a richer mix of vehicles, such as more SUVs and Cadillacs, and implementing cost controls, GM can handle other headwinds, he said.

Tsien's comments come amid concerns about China's slowing growth rate for light vehicle sales, particularly among foreign nameplates. Foreign car makers sold about four million vehicles in the first quarter, roughly flat with a year earlier, according to the China Association of Automobile Manufacturers.

GM and other forecasters predict sales growth for the wider Chinese market of between 6% and 7% in 2015 compared with the prior year, but the market is getting tougher. To keep pace after losing market share in the first quarter compared with the same period in 2014, GM's main venture joined other auto makers in lowering prices. It slashed prices on 40 models by as much as 53,900 yuan (about $8,700).

In a note to investors, RBC Capital Markets auto analyst Joseph Spak said "this is a delicate situation as consumers have become accustomed to discounts." GM needs to keep the black ink flowing, having recently committed to investing $14 billion in China through 2018 to stay relevant in a market it expects to see volume grow to 30 million in sales from 24 million.

Spak, however, added that China for a long period "disobeyed basic economics being the most fragmented in the world but the highest profit region. Those above-average Chinese auto maker profit margins are likely a thing of the past."