GM, Ford still see strong sales in China

China’s frenetic auto sales pace slowed in July, but that’s not necessarily bad news for American automakers there like General Motors and Ford.

Sales rose 9.7% in July to 1.3 million vehicles compared to the same month last year. That was down from an 11.5% sale gain in June and 13.9% gain in May, the Associated Press reports.

For automakers betting big on China, you might think there would be worries about whether their factory building campaigns and big plans were overzealous given the gradual slowing. Not so, says the AP.

Actually, it’s a good news. Foreign brands from American, German, South Korean and Japanese brands are squeezing out Chinese domestic models. Chinese consumers have long loved foreign brands, which they perceive as having higher quality than the domestic stuff.

General Motors has a huge stake in China. Ford is working to catch up, including reintroducing its Lincoln luxury brand there.

GM says sales of its branded vehicles in China rose 12.7% in July. Ford’s China sales were up 25%.