Automotive News   |   Automotive News Europe   |   Autoweek   |   Automobilwoche

Automotive News China Newsletter
Register our free newsletter, sent each Monday and Thursday

     Automakers   Suppliers   Auto Show   Comment   Car Cutaway   Newsletters   Press Releases   Chinese Version   Register for Newsletter
  Contact Us:   Editorial   Advertising   Subscription Information   |   About Us   Media Kit
Home >> Automaker Email this story   Print this story
 
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.

Related Stories
  • Geely sales continue to surge; Great Wall deliveries slump
  •     --Published:2018/10/8
     
  • Aptiv to supply cockpit controller to Great Wall's crossovers, SUVs
  •     --Published:2018/7/8
     
  • Great Wall reports 52% net profit growth on improved product profitability
  •     --Published:2018/20/7
     
  • VW to build EVs for Seat brand at JV with JAC
  •     --Published:2018/13/7
     
  • Great Wall maintains growth on pickup demand
  •     --Published:2018/19/6
     
  • Great Wall to launch first product under EV brand in 3rd quarter, report says
  •     --Published:2018/29/5
     
  • VW, JAC begin output at EV venture
  •     --Published:2018/29/5
     
  • Talks for Mini production in China are 'going well,' BMW CEO says
  •     --Published:2018/15/5
     
  • Great Wall sales advance behind pickups, new crossovers
  •     --Published:2018/11/5
     
  • VW to launch SOL EV brand with subcompact crossover
  •     --Published:2018/1/5
     
  • Great Wall begins building assembly plant for light trucks in Chongqing
  •     --Published:2018/3/4
     
  • Great Wall sales stall on weak Haval crossover, SUV demand
  •     --Published:2018/16/3
     
  • Great Wall seeks to double sales by 2025, readies EV push
  •     --Published:2018/9/3
     
  • BMW to develop electric Mini in China
  •     --Published:2018/9/3
     
     

    Our Newsletter Editions
    Automotive News China produces two email newsletters each week. You can sort your news by the articles highlighted in each of our newsletters here.

    Select your newsletter     

     
     

    Automotive News China
    Room 1303, Building 2, Lane 99, South Hongcao Road,
    Shanghai 200233
    Telephone: 86-139-1851-5816
    Fax: 86-21-6495-0895
     
    Home | Help Center | About Us | Privacy Policy | RSS
    Entire contents © Crain Communications, Inc.
    Use of editorial content without permission is strictly prohibited. All Rights Reserved.
    »¦ICP±¸06057291ºÅ