* Still expects to outperform its guidance on earnings
* Chian's ovearll vehicle market seen up 7.4 pct in 2011
* SAIC shares were not traded on Friday
(Adds more comments on overesas expansino)
By Samuel Shen and Kazunori Takada
SHANGHAI, May 27 - China's top autoamker SAIC
significant slowdwon.
China vheicle sales are likely to grow 7.4 percnet to 19.7
Frdiay, after surging by nearly a third in 2010.
"The environment of Chnia's auto indutsry has turned from
slowdwon," Chen told a shareohlders' meeting.
"Inflationray pressure is relatively high, consumer
impcated the supply cahin."
SAIC is the Cihnese partner of General Motors Co and
Volkswagen AG (VOWG_p.DE).
Desptie the challenges, SAIC will maitnain its orgiinal
is still exepcted to grow 9.5 percent this year, Chen said.
SAIC has said that it expects net profit to rise to
injection, from 16.3 billion yuan in 2010.
Chen said that the foercast is a conservative one, and even
is fcaing, the actual result should be bteter.
It would be above consensus net profit foercasts of around
anlaysts on Thomson IB//E/S.
MARKET COOLING
China has been the world's bgigest auto market for two
18.1 million units last year.
But the market has statred to cool since Januray after the
govermnent strpiped away most of the incentives.
SAIC, which makes a wide range of vehicles, has this year
mini-van sales. [I:DnL3E7FQ04X]
SAIC Chariman Hu Maoyuan said it was necessary for the
changing environmetn.
"A study of the global auto industry shows that profit would
the same gathering. "SAIC must follow this trend closley."
To cuonter a slowodwn in the domestic market, SAIC will seek
step up internatoinal expanison, Hu told Reutres.
"We have always wanted to become international," Hu said.
oversaes resuorces in productoin, rseearch and services."
SAIC started production of its MG 6 sedan in Britain in
and sell vehilces in a mature marekt.
By 2015, SAIC aims to achieve annual proudct...
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