Jan. 6 (Bloomberg) -- General Motors Corp., the largest overseas automaker in China, boosted 2008 sales 6 percent, the slowest pace in at least six years, on waning demand and a lack of new models.

GM and its ventures sold 1.09 million vehicles in the country last year, the automaker said in an e-mailed statement today. Sales rose 19 percent in 2007 and at least 27 percent in each of the four preceding years.

Sales at GM’s largest Chinese passenger-car venture fell 7 percent last year as Volkswagen AG and Toyota Motor Corp. lured customers with newer models and because of cooling demand caused by a slowing economy. GM plans to add at least five new China models within three years as it counts on emerging markets and a U.S. government loan to weather plunging U.S. demand.

“GM’s sales are suffering from a transition period, as most models are approaching the end of lifecycles,” said Yale Zhang, director at CSM Asia. “It’ll recover this year after the temporary adjustment.”

Shanghai General Motors Co., the U.S. automaker’s venture with China’s SAIC Motor Corp., sold 445,709 vehicles last year, according to the statement. The venture will be completely renewing its product portfolio over the next few years, including the recently introduced Buick New Regal and Enclave.

“While we expect vehicle sales in China to remain steady in 2009, we anticipate China remaining the world’s fastest- growing major market over the next decade,” Kevin Wale, GM China’s president, said in the statement. “GM will stay aggressive to ensure we continue to be a leader in this key market for our company.”

China’s overall vehicle sales likely rose about 5 percent last year to about 9.2 million, Song Xianmao, a Ministry of Commerce official, said at a conference in Beijing today. That compares with a growth rate of 22 percent a year earlier.

The nation’s passenger-car sales may grow 6 percent this year, according to CSM.

To contact the reporter on this story: Irene Shen in Shanghai at ishen4@bloomberg.net

Last Updated: January 5, 2009 21:59 EST