(Yicai Global) July 3 -- SAIC Motor,China’s largest automaker by sales, plans to spend as much asCNY3.034 billion (USD429.4 million) buying back its own shares, with the repurchased equity used for stock incentive schemes.

SAIC will purchase 58.42 million to 117 million shares in the next six months for a maximum of CNY25.97 (USD3.7) each using its own capital, the Shanghai-based company announced after today’s market close. That represents 0.5 percent to 1 percent of its total shares outstanding.

Separately, SAIC said yesterday that its wholly owned Hong Kong plans to pay up to HKD1.9 billion (USD245 million) in cash for up to 613 million shares of auto rental firm CAR held by Ucar and Amber Gem. That amounts to about 28.9 percent of CAR’s issued share capital, meaning that SAIC will become its largest shareholder.

Shares of SAIC Motor [SHA: 600104] gained 4.4 percent today to close at CNY18.65 (USD2.64) each. The benchmark Shanghai Composite Index climbed 2 percent.

Editor: Peter Thomas