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Great Wall, JAC see profits fall in 2017
Automotive News China | 2018/2/2

Two major Chinese automakers, Great Wall Motor Co. and Jianghuai Automobile Co., posted profit declines of more than 50 percent in 2017 on lower sales and fatter new-vehicle discounts.

Great Wall, China's largest manufacturer of crossovers and pickups, estimates its net profit last year fell 52 percent from a year earlier to 5.0 billion yuan ($794 million).

The company blamed the drop in profitability on higher vehicle discounts, which squeezed profit margins, as well as increased marketing expenses and r&d costs. 

In 2017, Great Wall¡¯s sales slid 0.4 percent to 1.07 million vehicles as deliveries of the company¡¯s Haval brand crossovers and SUVs declined and were eclipsed by sales gains for pickups and the new Wey premium brand. 

Jianghuai Automobile Co., which produces trucks, crossovers and multipurpose vehicles, told investors in a statement that its 2017 net profit tumbled 58 percent to 484 million yuan.

JAC attributed the decline in profits to lower light-vehicle sales and a reduction of subsidies for electric vehicles by the Chinese government. 

In 2017, JAC¡¯s deliveries of light vehicles plummeted 40 percent to 222,200. Overall vehicle sales, including medium- and heavy-duty trucks, dropped 21 percent to 510,892. 

Last year, sales of an electric crossover, the only alternative-energy vehicle in JAC¡¯s lineup, surged 54 percent to 28,263. 

But because of lower EV subsidies, the amount of subsidies the company obtained for the electric crossover in the year declined 6.6 percent year on year to 155.6 million yuan.

Great Wall, a private company headquartered in Baoding of north China¡¯s Hebei province, is listed in Hong Kong and Shanghai. 

JAC, a state-owned automaker headquartered in Hefei of east China¡¯s Anhui province, is a Shanghai-listed company.

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