SAIC Motor, China’s largest carmaker, said that quarterly earnings had dropped nearly 50 per cent, and forecast a flat vehicle market in China for 2009 in spite of surprisingly strong China vehicle sales.

Net profit for the first quarter was Rmb627m ($91m), down from Rmb1.24bn in the same period last year. Full-year 2008 net profits had fallen 85 per cent to Rmb656m. The quarterly profits reversed fourth-quarter losses, but SAIC said the outlook for the full year “is not optimistic with lots of uncertainties ahead”.