SAIC Motor sees 2010 sales growth slow to 10%

SAIC Motor Corp, China's biggest automaker, expects its sales to increase by over 10 percent this year, sharply lower than its growth in 2009, as the market slows down.

SAIC, which produces cars in joint ventures with General Motors and Volkswagen in China, is likely to sell at least 3 million vehicles this year, its president Chen Hong said on Sunday.

The company expects to roll out at least four of its own-brand models during the year, including an SUV and two MG models, he said.

SAIC's 2010 forecast would represent growth of 10 percent, a big drop from the 57 percent growth rate in 2009 when SAIC sold 2.72 million vehicles, but would be in line with broader market growth, Chen said in an e-mailed statement to Reuters.

"Considering the explosive growth seen in the domestic automobile market in 2009 and based on a prudent estimate for 2010, we expect the Chinese car market sales to still increase by over 10 percent, exceeding 15 million in 2010," he said.

SAIC's 2009 growth rate was roughly in line with the overall market. China overtook the United States as the world's biggest auto market last year as China launched a raft of economic incentives aimed at boosting consumption during the global downturn.

China, has been a major bright spot amid a global industry downturn. Passenger car sales jumped 52.9 percent in 2009, helped largely by Beijing's policy incentives.

Chinese automakers, which have benefited from the rapid growth in the home market and are increasingly eager to tap into other countries, have become active buyers on the global stage.

SAIC, which holds a majority stake in South Korean sport utility vehicle (SUV) maker Ssangyong Motor Co, will pay close attention to changes in automobile markets at home and abroad and make acquisitions when appropriate, Chen said, without giving details.