CHONGQING Chang'an Automobile Co, Ford Motor Co's Chinese partner, said first-half profit rose 3.7 percent on sales of Focus cars and revamped Mondeo sedans in Asia's biggest automobile market.

Net income climbed to 450 million yuan (US$66 million), or 0.19 yuan a share, from 434 million yuan, or 0.22 yuan, a year earlier, the Chongqing-based company said in a Shenzhen Stock Exchange statement yesterday. Sales rose 9.7 percent to 7.9 billion yuan.

Chang'an Auto's venture with Ford boosted sales 25 percent in the period, helped by the introduction of a new Mondeo sedan in November. Gains were limited by rising steel prices and slower-than-expected sales of Mazda Motor Corp models.

Chang'an Ford Mazda Automobile Co sold 116,903 cars in the first half, Ford said last month. Focus sales rose 11 percent to 61,108, according to the China Association of Automobile Manufacturers. Mondeo sales climbed 24,491. Chang'an Auto owns 50 percent of Chang'an Ford. The rest is split between Ford and Mazda, its Japanese affiliate. Mazda said on Thursday that it was trimming production at the venture until the end of next month because of rising inventories of Mazda3/Axela and Mazda2/Demio models. The cuts, totaling 5,000 vehicles, are equivalent to 1.4 months of inventory, according to spokeswoman Yukari Hara.

Chang'an Auto, which has fallen more than 70 percent this year as higher material prices and rising competition crimps profit margins, rose 3.9 percent to 4.24 yuan in Shenzhen trading yesterday.