SAIC's profit takes a sharp drop in Q1
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Net profit at SAIC Motor Corp fell sharply in the first quarter from the same period a year ago to 4.5 billion yuan (US$691 million).
The nation's largest auto group said net income for the first three months of this year climbed an annual 56 percent but this was a significant tumble from the 359-percent surge seen in the first quarter in 2010 when the car maker earned 2.9 billion yuan.
SAIC is among car makers in China that reported slower sales after overall auto sales in the nation eased following a nearly two-year boom. Demand was hit by the expiry of government incentives on small-engine vehicles and measures by several cities to curb traffic congestion.
Sales in the world's largest auto market rose 8.1 percent to 4.98 million units in the first quarter this year, and again the growth trailed the 72 percent gain a year ago.
Although Citic Securities Co forecast China's overall auto sales to grow at a moderate pace of 10 to 15 percent this year, it says "leading market players will see sales and profit growth exceeding the industrial average."
SAIC, which is a partner of Volkswagen AG and General Motors Corp, sold 1.06 million vehicles in the first quarter, a rise of 18 percent annually, helped by solid market demand and the growth of its self-branded vehicles.
Its minivan joint venture SAIC-GM-Wuling contributed most to the sales with 361,000 units. Shanghai VW sold 286,800 units, up 32.6 percent, while Shanghai GM lifted sales by 33 percent to 313,700 units.
Sales of its self-branded models under Roewe and MG hit a record 45,000 units, the car maker said.
