SAIC Motor Corp. increased its profit by 47% in the third quarter as it sold more cars with partners Volkswagen AG and General Motors Co. in China, the world's biggest auto market.
SAIC, which is China's largest domestic automaker, released a statement to the Shanghai stock exchange that the net income for the quarter increased to 3.7 billion yuan ($554 million) from 2.53 billion yuan a year earlier. Sales more than doubled to 81.6 billion yuan.
SAIC, which offers Buick Excelle compacts and VW Passat sedans on the mainland, boosted car sales as government incentives and expanding incomes stirred up demand.
SAIC’s sales in the third quarter increased by 21% to 884,998 units from a year earlier, beating rivals BYD Co. and Geely Automobile Holdings Ltd.
Zhang Xin, an auto analyst with Guotai Junan Securities Co. in Beijing, said that it “won't be too difficult” for SAIC to have a steady profit increase.
Before the earnings were released, Zhang had said that the company has a “good strategy” to develop brands and keep production costs under control. [via autonews - sub. required]