Reuters reported that major Chinese auto group Chongqing Changan Automobile reported a 9.3% fall in its first quarter earnings on Tuesday due to weak minivan sales.

In January to March 2011 period, Changan booked CNY 722 million in net profit, down from CNY 796 million a year earlier. Beijing had at the end of last year stripped away most of its policy incentives for the auto industry, including subsidies for farmers who traded in oil guzzling vehicles for more fuel efficient models.

The move had hit Changan and its rivals, including General Motors' venture in southern China that makes Sunshine and other mini vehicles.

In the first three months, Changan sold 538,100 vehicles, down by 2.69%, lagging an 8.1% gain in China's overall vehicle market.

Changan also makes cars in a three way tie up with Ford Motor and Mazda Motor.

(Sourced from www.reuters.com)