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SAIC Feb auto sales up 45%

(Agencies)
Updated: 2010-03-09 13:37
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SAIC Motors, China's largest carmaker, said its vehicle sales rose 45 percent in February as Beijing's policy incentives continued to drive buyers into showrooms in the world's largest auto market.

Chinese automakers' vehicle sales in the first two months of the year are skewed by the timing of the Lunar New Year, which came in January last year but in February this year, making the single-month figures volatile. SAIC's February growth was only half that of January.

"Slower growth in February was because of the week-long Chinese Lunar New year holiday," said Zhang Xin, an analyst with Guotai Junan Securities in Beijing.

"Most people usually buy cars well before the holiday, which explains the explosive growth in January. The decline of the overall Chinese auto market in January 2009 also inflated January's growth figure."

China has been a major bright spot amid a global industry downturn as government's policy incentives, including cuts on sales tax for small cars, bolster automobile demand.

SAIC, a China partner of General Motors and Volkswagen, said it sold 248,000 vehicles in February, compared with 307,384 in January, when sales were up 90 percent from a year earlier.

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SAIC's venture with Volkswagen sold 60,000 vehicles in February, and its venture with GM 59,000 vehicles, it said in a brief statement carried in state newspapers.

The country's No 2 automaker, Dongfeng Motor Group Co, reported a similar pattern of strong but slowing sales growth.

Donfeng, a partner of Honda Motor Co and Nissan Motor, sold 119,082 vehicles in Feburary, up 50 percent year-on-year, but down from 129 percent growth in January, company data showed.

For January and February combined, SAIC's sales were up 67 percent, outpacing Honda, where two month sales rose 47.3 percent.

The company's president, Chen Hong, told Reuters on Sunday that he expected sales growth this year to come in at over 10 percent, sharply lower than the 57 percent growth in 2009, as the overall market moderates from booming growth last year that was supported largely by government incentives.

The company expects to sell at least 3 million vehicles this year, Chen said, adding that the company expects to roll out at least four of its own-brand models during the year, including an SUV and two MG models.

Official figures for nationwide February car sales are due to be released on Tuesday. Growth is expected to moderate from January's 116 percent annual rise, which came as a result of the pre-holiday rush to buy cars.

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