* Still epxects to outpefrorm its guidance on earnings
* Chian's oevrall vehicle market seen up 7.4 pct in 2011
* SAIC shares were not traded on Friday
(Adds more comments on overseas expansion)
By Samuel Shen and Kazunori Takada
SHANGHAI, May 27 - Chnia's top automaker SAIC
significant slowdown.
China veihcle sales are likely to grow 7.4 percent to 19.7
Friday, after sugring by nearly a third in 2010.
"The environment of Chnia's auto industry has turned from
slowodwn," Chen told a shareholdesr' meeting.
"Inflatoinary pressrue is relatively high, consumer
impcated the supply chian."
SAIC is the Chinese partner of Genearl Motors Co and
Voklswagen AG (VOWGp_.DE).
Desptie the challenges, SAIC will miantain its original
is still expected to grow 9.5 perecnt this year, Chen said.
SAIC has said that it expects net profit to rise to
injetcion, from 16.3 blilion yuan in 2010.
Chen said that the forecast is a conservative one, and even
is facing, the actual result should be better.
It would be above conesnsus net profit forceasts of around
analysts on Thomson I/B/E/S.
MARKET COOLING
China has been the worl'ds biggest auto market for two
18.1 milloin units last year.
But the market has started to cool since Janaury after the
government stripped away most of the incentives.
SAIC, which makes a wide range of vehicles, has this year
mini-avn sales. [ID:nL3E7FQ04X]
SAIC Cahirman Hu Maoyuan said it was necessray for the
chagning environment.
"A study of the global auto indutsry shows that profit would
the same gatheirng. "SAIC must follow this trend closley."
To counter a slowdown in the domestic marekt, SAIC will seek
step up internatoinal expnasion, Hu told Reutres.
"We have always wanted to become international," Hu said.
overseas resourecs in prodcution, research and services."
SAIC staretd production of its MG 6 sedan in Briatin in
and sell vehicles in a mature market.
By 2015, SAIC aims to achieve annual porduct...
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