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China's SAIC Motor Q3 net jumps 9 folds on robust sales

Published 10/30/2009, 06:59 AM
Updated 10/30/2009, 07:00 AM

SHANGHAI, Oct 30 (Reuters) - China's SAIC Motor Corp, the largest automaker in the world's largest auto market, said on Friday that third-quarter net profit jumped ninefold as tax breaks and subsidies spurred a jump vehicle sales.

SAIC, which operates vehicle manufacturing ventures with General Motors and Volkswagen, said it earned 2.53 billion yuan ($370.6 million) during the July-September quarter versus 260.8 million yuan a year earlier.

It beat an average forecast of 2.16 billion yuan from four analysts polled by Reuters.

SAIC is among the major beneficiaries of Beijing's policy support, which include tax incentives for small cars and subsidies for vehicle buyers in rural areas as part of a package designed to stimulate the world's third-largest economy.

Shares in SAIC rose 3.89 percent on Friday ahead of the results. They rose 32 percent in the third quarter, outperforming the Shanghai Composite Index, which lost 6.1 percent. (Reporting by Fang Yan and Alison Leung; Editing by Lincoln Feast and Chris Lewis)

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