BMW's Chinese partner reported first-half profit that beat analysts' estimates, as it expanded dealerships to cater to demand for luxury vehicles that outpaced industry growth.

Net income at Brilliance China Automotive Holdings Ltd rose 42 percent to 1.33 billion yuan ($209 million) in the six months ended June 30, the company said in a statement to the Hong Kong Stock Exchange. That beat the 1.08 billion yuan average estimate of six analysts surveyed by Bloomberg. Sales fell 11 percent to 2.81 billion yuan.

Brilliance, which assembles BMW's 3- and 5-series sedans in China, is benefiting as rising incomes boost demand for premium-car sales in the world's largest vehicle market. Luxury-vehicle deliveries gained 24 percent in the first six months of this year, according to LMC Automotive data, outpacing the 7.1 percent gain in total passenger vehicle sales estimated by the nation's auto association.

China Daily-Agencies