GM also cooperated with its Chinese partner SAIC to produce cars and Wuling minivans in India this year, aiming for similar success throughout the developing world, where they are seeking a new growth engine other than waning Western markets.

Yang told China Daily that the Wuling minivan's success should contribute to the company's low-cost business model and commitment to bringing customers value.

"And we will replicate this low-cost business strategy in our new passenger car brand," said Yang.

"To be on the safe side, we (estimate) our total sales this year will reach 1.23 million units," he said.

With demand increasing and the planned launch of a new brand, Wuling has decided to expand its annual capacity at its Liuzhou plant from 590,000 units to 800,000 units by the end of 2012. It will also add 210,000 units of output to its Qingdao plant this year.

Seeing higher requirements from small- and medium-sized enterprises as well as private entrepreneurs in rural regions and small cities, Wuling launched the Hong Guang compact business vehicle last month.

"It's a new vehicle segment with huge potential as the income of Chinese people in rural regions increased by large scale in the past year amid the robust local economy," said Yang.

"To keep the leadership in our target market in rural regions, we have to shift our production strategy flexibly to well suit to the customers."