SAIC sales up 78.2% in third quarter, on course for 2 million car sales this year

---

Shanghai Automotive Industry Corporation (SAIC) is on set to sell 2 million cars this year thanks to its joint ventures with both VW and GM, as well as its own developed cars.

Sales of SAIC built vehicles soared in the third quarter of this year by 78.52% over the same period from last year. Sales of cars from the January to September period are at 1.94 million, SAIC is expected to top sales of 2 million vehicles by the end of the year. SAIC’s profit over the period is 5.15 billion RMB, an increase of 131.45% over 2008′s figures.

SAIC secretary Mr. Wang Jian Zhang believes that the increase in sales is mostly down to three reasons; the first is the cutting of sales tax and the central governments plans to encourage villagers to buy cars, and the second reason is due to mid end luxury car sales continue to increase. The third reason is due to sales of cars with 1.6l and large engines being at over 50.1% of sales in the third quarter.

Mr. Wang believes that internal demand is due to government policy, which has acted as a catalyst for explosive sales this year. The passenger car market has turned from being a market stimulated by tax cuts on small displacement cars, to a market that is doing well across the board. Mr. Wang feels that the car market has been doing well across every season, and does not forsee any large change next year.

Mr. Wang went onto speculate that the Chinese market will grow again by 10% to 15%, and may even go over 15%.