SAIC Motor has said its 2007 net profit more than tripled from a year earlier on strong sales and substantial contributions from assets injected by its parent.

The company said its net profit for the year ended December was CNY4.63bn, up from CNY1.36bn in 2006.

Revenue was up five-fold to CNY104.38bn from CNY19.56bn.

SAIC Motor's parent, Shanghai Automotive Industry Corp., injected CNY21.40bn worth of auto-related assets into the listed unit in late 2006, including its stakes in joint ventures with General Motors Corp. and Volkswagen AG

SAIC Motor said its vehicle sales grew 25.8% to 1.69m units last year, with sales of passenger vehicles up 24.3% at 1.14m. Sales of commercial vehicles rose 29% to 553,000 units.

Earnings per share stood at CNY0.708 up from CNY0.355 a year earlier.

The company said it has set a sales target of 1.9 m units for 2008, with total revenue seen growing to CNY119.1bn.

It forecasts that China's total domestic auto demand will grow 10% to 9.7m units this year.

However, the company also cautioned that overcapacity in the industry meant price competition would remain fierce.

It also said it planned a CNY15.31bn investment on major expansion projects, with some CNY7.35bn earmarked for the production of own-brand cars.