Shanghai Automotive Industry Corporation (SAIC; 600104.SH), FAW Car (000800.SZ) and Geely Automobile (0175.HK) all posted strong year-on-year net profit growth in the first half of 2010, the Wall Street Journal reported. Profits at the three car firms rose by over 200%, 100%, and 35%, respectively. China’s car market, already the largest in the world, has benefitted from a strong government stimulus program designed to boost sales during the economic downturn. However, while growth was strong in the first quarter, most car makers noticed a slowdown in the second quarter, in part due a winding down of government stimulus. SAIC Motor, China’s largest car maker in terms of sales volume, posted a particularly strong showing, with car sales up by more than 44% in the first half.
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