The Chairman of China's largest automaker revealed on Tuesday (9th June) that it has increased its 2009 sales prediction to over two million vehicles.

SAIC Motors saws its sales volumes leap by about 26 per cent to 1.39 million in the first five months of the year, buoyed by new government incentives aimed at stimulating demand.

Now Hu Maoyuan has explained that the company is optimistic of exceeding its original target of 1.8 million units, a figure which compares to sales of 1.83 million in 2008.

"Our vehicle joint ventures all did well during the period, while average monthly sales of our self-developed cars exceeded 6,000 units," he was quoted by Reuters as saying at a shareholders' meeting.

"[Passing the two million mark is] possible if there are no major changes in the economy. The target was based on the market situation in the second half of 2008, but we have seen a big improvement thanks to the government's new policies."

Chinese consumers have been flooding back to showrooms since February after tax cuts and discounts for buyers in rural regions were announced in Beijing.

General Motors, a partner of SAIC, has seen record sales volumes in the country - particularly for its Wuling minivans and trucks - in the past two months, despite being forced to file for bankruptcy.

Source:

UPDATE 1-SAIC Motors says may sell over 2 mln vehicles in 2009 (09/06/09)

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