SAIC net income dips 26%

SAIC Motor Corp, China's largest domestic automaker, said first-half profit fell 26 percent after 1.18 billion yuan ($173 million) of write-offs eroded gains from surging sales of General Motors Co and Volkswagen AG cars.

Net income declined to 1.45 billion yuan from 1.97 billion yuan, the Shanghai-based automaker said in a statement to the city's stock exchange yesterday. Sales rose 6.9 percent to 61.6 billion yuan.

The automaker booked write-offs after Korean unit Ssangyong Motor Co entered receivership on tumbling sales of sport-utility vehicles. The loss eroded the benefit of a 24 percent surge in vehicles sales caused by Chinese tax cuts, government subsidies and economic growth.