Top Chinese carmaker defies downward trend as 2011 Q4 profits soar.
SAIC's Roewe production line Image: SAIC |
Despite Chinese car sales slowing to only 5.2% last year, domestic producer SAIC reported solid quarterly earnings of $4.4 billion in 2011, citing strong sales of joint venture partners Volkswagen and General Motors as a contributing factor.
SAIC should continue to fare well through 2012, as GM and VW sales remain solid. While SAIC's vehicle sales rose 12% to just over four million, rival carmaker Dongfeng Motor slowed to around two million.
Sales dropped nearly 4.4% in the first two months of this year, largely due to the lunar new year holiday affecting automakers and dealerships. Still, SAIC forecast a 7-8% rise in net profit this year, with partners Shanghai GM and Shanghai VW expected to do even better as new plants – including a $3.17 billion plant in Xinjiang – will help the companies meet capacity.
SAIC's own brands, Roewe and MG, followed market trends with lukewarm sales of 162,000 units, although deputy chief Jiang Jun hopes to increase this figure 23.5% to 200,000 in 2012.