Guangzhou Automotive Industry Corp, the parent of red chip Denway Motors, says it has no interest in buying overseas vehicle assets because mainland carmakers lack the management skills to nurture a global car company. '[A mainland buyer] may not be able to manage its overseas acquisitions, even if it is able to afford the cheap assets during the global financial crisis,' Guangzhou Auto president Zhang Fangyou said yesterday after Denway's shareholders' meeting. 'Culture, legislation and consumption habits should all be taken into consideration.' Mainland carmakers are often rumoured to be possible buyers of distressed global vehicle giants. But no deals have been reached so far. In April, Zeng Qinghong, the chairman of Guangzhou Auto, said it would be interested in acquiring car-parts units of some global firms, because mainland carmakers needed the technology. But in order to maintain healthy growth, Mr Zhang said, the company would be prudent, because 'the long-term situation of the vehicle market is still not clear'. Denway, which is 37.9 per cent held by Guangzhou Auto, recorded a 3.6 per cent increase in sales in the first five months to 128,000 units. The carmaker said it had achieved 98.46 per cent of its first-half sales target. According to the China Association of Automobile Manufacturers, vehicle sales in the country in the first four months surged 33.48 per cent to 2.41 million units. 'We can't outpace the industry growth, because we don't sell 1.6-litre cars, which is the best-selling segment after the government encouraged consumers to buy small cars with supportive measures,' said Mr Zhang. The central government announced plans at the beginning of the year to slash the consumption tax on small cars. In addition, villagers can get a subsidy of up to 5,000 yuan (HK$5,675) when buying a small car. As for the plan to list Guangzhou Auto, Mr Zhang said no details could be disclosed at the moment, either in terms of a timeline, the scale of an offering or the parent company's restructuring plan for Denway. 'When the right time comes, we will proceed with the listing plan,' he said.