Shanghai Automotive Co., China's largest carmaker, said first-quarter profit more than quadrupled, after it bought stakes in ventures with General Motors Corp. and Volkswagen AG from its parent.

Net income rose to 1.16 billion yuan ($150 million), or 0.18 yuan per share, from a restated 245.6 million yuan, or 0.08 yuan per share, a year earlier, the company said in a statement to the Shanghai Stock Exchange today. Sales increased to 25.5 billion yuan from a restated 1.08 billion yuan, based on Chinese accounting standards.

Shanghai Auto shifted its focus to car assembly from auto parts through a 19.1 billion yuan asset swap with its parent in December. The company acquired stakes in ventures with General Motors Corp. and Volkswagen AG, giving it direct access to the world's fastest-growing vehicle market.

SAIC Motor Corp. and Shanghai Auto plan to boost sales by more than 15 percent this year, beating the estimated industry average, according to company President Chen Hong. The parent sold 1.34 million vehicles in 2006, surpassing China FAW Group Corp. to become China's largest automaker.

The company's shares fell 2.4 percent to 14.16 yuan in Shanghai yesterday. The stock has surged almost fourfold in the past 12 months.

GM's two joint ventures with Shanghai Auto sold 26 percent more vehicles, or 272,911 units, in the first quarter, helped by its best-selling model Excelle sedans, according to the China Association of Automobile Manufacturers.

Sales Goal

GM expanded its market share in China to 13.9 percent in the first quarter from 13.5 percent a year ago. The U.S. automaker plans to introduce about 10 new or revamped models in China this year to help it meet a 2007 sales target of "close to 1 million units" in the country.

Shanghai Auto's venture with Volkswagen, Europe's largest carmaker, sold 97,385 cars in the first three months, an increase of 56 percent from a year earlier, according to the auto association's statistics. Volkswagen aims to introduce as many as 14 new models in the country by 2009.

China's economy grew 10.7 percent last year, the fastest rate in 11 years, boosting auto sales. Vehicle sales may rise to 9 million by 2010, according to the National Development and Reform Commission. Sales last year were 7.22 million.

Sales of the company's first self-branded sedan, the Roewe 750, exceeded 7,000 units by April 20, according to Hu Maoyuan, chairman of Shanghai Auto. The Roewe is based on design rights bought from the bankrupt British automaker MG Rover Group Ltd.

SAIC Motor received 3.28 billion shares from Shanghai Auto in November in exchange for stakes in 11 auto ventures, three parts-makers and an auto finance company. Its stake in Shanghai Auto rose to 84 percent through the deal. Shanghai Auto booked profits from the ventures in the last two months of 2006.

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