PREVIEW-Chinese automakers face slower growth in H2

* WHAT: Chinese automakers Q2 earnings

* WHEN: Aug 22 BYD, Aug 25 SAIC, Aug 25 Geely

* Q2 earnings strong on strong sales

* Market seen slowing in H2 as govt slows economy

By Fang Yan and Doug Young

BEIJING, Aug 19 (BestGrowthStock) – Chinese automakers could report
strong earnings when they kick off quarterly results next week,
but the outlook could worsen as Beijing applies the brakes to a
racing economy after giving the world’s top auto market a
stimulus-fed boost in 2009.

Several major auto groups, from SAIC Motor Corp (600104.SS: )
to Chongqing Changan Automobile Co (000625.SZ: ), had projected a
big jump in first-half net profit on record sales.

But signs are emerging the market’s breakneck expansion has
started to slow since May, with the situation accelerating in
the summer months as a slowing economy and widespread natural
disasters kept buyers from showrooms.

“It won’t be an easy ride for all, especially in the summer
months. Demand should pick up in the peak auto sales season in
the autumn, but there is no way for any auto maker to match the
breakneck expansion in 2009,” said Lin Huaibin, an analyst with
IHS Automotive.

Warren Buffett-backed BYD (1211.HK: ) reports second quarter
results on Sunday, followed by top Chinese top automaker SAIC
and Geely Automobile (0175.HK: ) on Wednesday.

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Earlier this month, a Chinese government think tank had
warned the country’s economy will cool further this quarter as
fiscal pump-priming starts to fade and the restocking cycle
draws to a close. [ID:nTOE673003]

Extraordinarily strong automobile demand a year ago, pumped
up by Beijing’s policy initiatives, are also blamed for a
moderate 13.6 percent rise in car sales in China in July, the
slowest growth in 15 months.

Still, those who have more aggressively pushed out new
models or have a wider product portfolio, such as SAIC and
Dongfeng Motor Group Co (0489.HK: ), are set to hold up
relatively well.

SAIC makes Buick, Chevrolet, Cadillac and Volkswagen models
with General Motors [GM.UL] and the top European automaker.
Dongfeng operates car ventures with Honda Motor (7267.T: ),
Nissan Motor (7201.T: ) and PSA Peugeot-Citroen (PEUP.PA: ).

Others such as BYD, which sells passenger cars only under
its own brand, should be bracing themselves for a tough ride.
BYD, partly owned by Buffett’s Berkshire Hathaway Inc (BRKa.N: )
(BRKb.N: ), already cut back its full-year sales target by 25
percent earlier in the month. [ID:nTOE67303G]
(Editing by Ken Wills and Anshuman Daga)

PREVIEW-Chinese automakers face slower growth in H2