* Q1 vehicle sales up 3 pct, revenue rises 6 pct
* SAIC has JVs with VW and GM, also makes its own brands
(Adds details of results, context)
BEIJING, April 28 (Reuters) - SAIC Motor Corp Ltd
, China's biggest automaker, reported a 4.1 percent
rise in net profit for the first quarter, a period when a
rollback of a government tax incentive slowed its sales growth.
The Shanghai-based automaker, which has joint ventures with
Volkswagen AG and General Motors Co, in
addition to making its own brands of vehicles, posted a net
profit of 8.26 billion yuan ($145.03 million), according to a
company statement on Friday.
Both VW and GM are strong in the small sedan segment that
benefited from a tax cut on cars with engines of 1.6 litres or
below and both recorded contracting sales in China for the first
quarter after that policy was scaled back.
The purchase tax on those vehicles rose to 7.5 percent as of
January 1 from 5 percent in 2016 when the government stepped in
to stimulate demand. The tax will return to the normal 10
percent rate next year.
SAIC's revenue rose 6 percent to 196.3 billion yuan from a
year earlier. Its vehicle sales rose 3 percent for the quarter.
In the same quarter of last year, SAIC had posted vehicle sales
growth of 4.5 percent.
Overall sales in the Chinese auto market, the world's
largest, rose 7 percent in the first quarter of 2017 compared to
a year ago, according to the China Association of Automobile
That outpaced CAAM's prediction that sales will rise just 5
percent this year, compared to 13.7 percent in 2016, with CAAM
saying that economic and policy pressures remain.
Automakers with strong new offerings in the hot-selling
sport-utility vehicle segment, such as Honda Motor Co Ltd
, have outperformed the overall market as sedan sales
($1 = 6.8950 Chinese yuan renminbi)
(Reporting by Muyu Xu and Jake Spring; Editing by Randy Fabi
and Muralikumar Anantharaman)