Shanghai Automotive expects car prices in the mainland to stabilise in the second half of the year, thanks to a concerted effort by various authorities to crack down on smuggled car parts.
The Shanghai-listed A share has lost about 80 million yuan (about HK$74.4 million) from falling Santana prices this year, but said further declines would be unlikely, the Shanghai Securities News reported yesterday.
Shanghai Automotive distributes most of its gears and vehicle springs to Shanghai Volkswagen - a joint venture between its state-run parent Shanghai Automotive Industry Corp (SAIC) and Germany's Volkswagen that makes the Santana models.
The company, which spun off from SAIC last November, posted a net profit of 355.77 million yuan in the first six months on sales of 971.31 million yuan.
As part of the public offer Shanghai Automotive bought 19 per cent of a US$1.57 billion venture with General Motors to produce Buick cars from SAIC.
SAIC retains 31 per cent in Shanghai General Motors while GM will keep its 50 per cent shareholding.
