Shanghai Automotive Industry Corp (SAIC) may be looking to reduce the scale of its Hong Kong IPO by up to 50% to around US$1bn, a report said. The Financial Times quoted the company as saying the sharp downturn in China's auto sector and equity market was driving the re-evaluation of the IPO, planned for the second half of the year. Earlier projections from SAIC indicated the company was looking to raise as much as US$2bn in the offering. SAIC is one of China's largest carmakers and has joint production ventures with General Motors and Volkswagen. The company has said it wants to become one of the world's six largest car makers by 2010, but does not produce cars of its own.