(Updates with share price in sixth paragraph)
Oct. 27 (Bloomberg) -- Dongfeng Motor Group Co., the Chinese partner of Nissan Motor Co., said nine-month profit fell 3 percent after Japan’s earthquake disrupted production and vehicle sales slowed in China.
Net income fell to 8.35 billion yuan ($1.3 billion) from 8.61 billion yuan a year earlier, the company said in a Hong Kong stock exchange statement today, citing Chinese accounting standards.
Dongfeng, the largest publicly traded automaker in Hong Kong by market value, faced output disruptions after Japan’s March 11 earthquake and tsunami caused shortages of electricity and parts at partners Nissan and Honda Motor Co. Deliveries have also slowed in China this year after the government reinstated a 10 percent sales tax on small cars and phased out trade-in subsidies in rural areas.
Industrywide sales will grow less than 5 percent this year, compared with 32 percent last year, the China Association of Automobile Manufacturers said Oct. 11, reducing its forecast for the second time in three months.
The Wuhan, China-based company also makes cars with PSA Peugeot Citroen in the nation.
Dongfeng rose 7.5 percent to HK$13.80 in Hong Kong today. The stock has risen 3 percent this year, compared with a 15 percent decline in the benchmark Hang Seng Index.
--Liza Lin. Editors: Chua Kong Ho, Stephanie Wong
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