Geely Auto Profit Up 35% in 2009

April 12, 2010
China's largest private carmaker saw profits triple.

Helped by government incentives aimed at driving up sales of small cars, Geely Automobile Holdings Ltd. said on April 12 that its 2009 net profit rose 35% from a year earlier.

The auto maker, whose parent is buying Volvo Cars, sold 326,710 units last year, up 60% from 2008, lifting its share of China's sedan market to over 4%.

Geely -- the listed unit of Zhejiang Geely Holding, one of China's largest private carmakers -- said full-year net profit rose to 1.18 billion yuan (US$173 million) in 2009 from 879.1 million yuan in the previous year.

"The increase was partly helped by the government's policies to promote economy sedans but also as a result of the improving product quality and rising customers' satisfaction over Geely's products," the statement said.

Revenue more than tripled to 14.1 billion yuan from 4.3 billion yuan.

The results were also boosted after Geely completed a deal with its parent in July 2008 that increased its stakes in five car-making subsidiaries to 91% from 46.8%.

China's auto sales soared to 13.64 million units in 2009 on government policy incentives, outstripping those of the United States for the first time in January last year to make the Asian giant the world's biggest car market.

These measures included slashing taxes on cars with engines smaller than 1.6 liters and subsidizing clean-technology vehicles.

Copyright Agence France-Presse, 2010

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