Changan Auto says Q1 net down 9.3% on weak minivan sales

Reuters (Shanghai) - Major Chinese auto group Chongqing Changan Automobile reported a 9.3 percent fall in its first quarter earnings on Tuesday due to weak minivan sales.

From January to March, Changan booked 722 million yuan ($111 million) in net profit, down from 796 million yuan a year earlier, it said in a stock exchange filing.

Beijing had at the end of last year stripped away most of its policy incentives for the auto industry, including subsidies for farmers who traded in oil-guzzling vehicles for more fuel-efficient models.

The move had hit Changan and its rivals, including General Motors' venture in southern China that makes Sunshine and other mini vehicles.

In the first three months, Changan sold 538,100 vehicles, down 2.69 percent, lagging an 8.1 percent gain in China's overall vehicle market.

Changan also makes cars in a three-way tie-up with Ford Motor and Mazda Motor.