Oct. 29 (Bloomberg) -- China will lead the U.S. as the world’s biggest auto market for a “long time,” and demand will grow next year even as the Chinese government reduces stimulus measures, said Nick Reilly, General Motors Co.’s head of international operations.

Vehicle demand in the world’s most populous nation may increase to more than 13 million units next year from about 12.5 million in 2009, Reilly told reporters in Seoul yesterday. “I don’t see the U.S. being anywhere near that,” he said.

The Chinese government cut vehicle taxes and introduced auto subsidies in rural areas earlier this year after demand plunged amid an economic slowdown. The nation’s car sales have risen more than 35 percent for six straight months, including a 90 percent jump in August.

The pace of industry expansion may slow next year as the government gradually cuts back incentives, Reilly said.

Growth will be “nothing like as fast as this year because we have particular government stimulus in the auto industry,” he said. “My guess is, they’ll probably wind down incentives slowly, but I don’t think they’ll just take them off at once.”

Detroit-based GM, the largest foreign automaker in China, doubled its September sales in the nation to 181,148 vehicles. The company sold 1.29 million units in the first nine months of this year, more than its tally for all of 2008.

To contact the reporter on this story: Seonjin Cha in Seoul at scha2@bloomberg.net

Last Updated: October 28, 2009 21:00 EDT