SAIC net gains from tax breaks, subsidies
By Fang Yan and Jacqueline Wong |
October 31, 2009, Saturday
|
Print Edition
Print Edition
CHINA'S SAIC Motor Corp, the No. 1 auto maker in the world's largest auto market, yesterday said third-quarter net profit jumped ninefold as tax breaks and subsidies spurred a jump in vehicle sales.
SAIC, which runs vehicle manufacturing ventures with General Motors and Volkswagen, has been a major beneficiary of China's policy support, including tax incentives for small cars and subsidies for buyers in rural areas, part of a package designed to stimulate the world's third-largest economy.
Analysts are upbeat about the outlook for SAIC for the full year and beyond, given robust auto demand and a low comparative base last year, when the auto maker was bogged down by big write-offs for its loss-making South Korean subsidiary, Ssangyong Motor.
SAIC earned 2.53 billion yuan (US$370.6 million) during the July-September quarter, beating an average forecast of 2.16 billion yuan from four analysts polled by Reuters and versus 260.8 million yuan a year ago.
From January to September, it booked 3.97 billion yuan in net profit, up from 2.23 billion yuan a year earlier, it said.
Turnover rose 21.5 percent to 99.61 billion yuan in the first nine months, or roughly 84 percent of its full-year goal of 119.4 billion yuan.
The Shanghai-based auto maker attributed the strong earnings to government incentives which helped the country's vehicle market bounce out of its lows.
SAIC's vehicle sales jumped 47.27 percent from a year earlier to 1.95 million in the first nine months, topping the 1.83 million units sold for all of last year, according to company data.
Sales of its own-brand vehicles jumped 186 percent to more than 65,000 units in the first nine month, it said.
SAIC is the top auto maker by sales in China, which has more than 100 companies fighting for a piece of the market which overtook the United States as the world's largest at the start of this year.
The pace of sales may slow next year as incentive policies expire at the end of this year, but demand in smaller, inland cities could still help lift its topline, analysts said.
Nick Reilly, president for GM's international operations, told reporters earlier this week he expected China's car market to grow more than 10 percent next year.
SAIC, which runs vehicle manufacturing ventures with General Motors and Volkswagen, has been a major beneficiary of China's policy support, including tax incentives for small cars and subsidies for buyers in rural areas, part of a package designed to stimulate the world's third-largest economy.
Analysts are upbeat about the outlook for SAIC for the full year and beyond, given robust auto demand and a low comparative base last year, when the auto maker was bogged down by big write-offs for its loss-making South Korean subsidiary, Ssangyong Motor.
SAIC earned 2.53 billion yuan (US$370.6 million) during the July-September quarter, beating an average forecast of 2.16 billion yuan from four analysts polled by Reuters and versus 260.8 million yuan a year ago.
From January to September, it booked 3.97 billion yuan in net profit, up from 2.23 billion yuan a year earlier, it said.
Turnover rose 21.5 percent to 99.61 billion yuan in the first nine months, or roughly 84 percent of its full-year goal of 119.4 billion yuan.
The Shanghai-based auto maker attributed the strong earnings to government incentives which helped the country's vehicle market bounce out of its lows.
SAIC's vehicle sales jumped 47.27 percent from a year earlier to 1.95 million in the first nine months, topping the 1.83 million units sold for all of last year, according to company data.
Sales of its own-brand vehicles jumped 186 percent to more than 65,000 units in the first nine month, it said.
SAIC is the top auto maker by sales in China, which has more than 100 companies fighting for a piece of the market which overtook the United States as the world's largest at the start of this year.
The pace of sales may slow next year as incentive policies expire at the end of this year, but demand in smaller, inland cities could still help lift its topline, analysts said.
Nick Reilly, president for GM's international operations, told reporters earlier this week he expected China's car market to grow more than 10 percent next year.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
