Guangzhou Automobile Group, which has joint ventures with Honda and Toyota, has booked first half net profit almost halved year on year to CNY1,665,880 from CNY3,254,340.

Sales were CNY27,643,335 versus CNY28,897,215 in 2010.

Operating profit was CNY2,149,859 compared with CNY3,376,861 in first half 2010.

Chairman Zhang Fangyou said: “In the first half of 2011, the overall economy of China maintained steady progress, whilst the economic growth tended to slow down due to the impact of tightened domestic monetary policy in the macro-environment and some international economic uncertainties, such as the Japanese earthquake and European debt crisis.

“Under this macro environment, combined with the withdrawal of auto consumption policy, although the automobile industry of China experienced rapid growth during the past two years, the rate of growth in China’s automobile sales volume declined remarkably in the first half of 2011.

“Looking forward to the second half of 2011, we believe that, although the world economy has not yet recovered completely and maintaining domestic price stability remains the top priority of macro-economic control, the upturn tendency of Chinese economy as a whole will remain unchanged and therefore the automobile industry in PRC will see an end to the downturn trend and resume a level of steady and rapid growth, with an estimate of approximately 10% increase in growth rate.”