Chinese language automaker JAC Motors has revealed a difficult monetary yr 2024, marked by a 16.59% year-on-year decline in passenger car gross sales and a 6.28% drop in income. The corporate reported a considerable internet lack of 1.784 billion yuan (234.74 million USD), a staggering 1277.59% lower in comparison with the earlier yr, alongside a discount of 1,656 in its whole workforce.
The numerous losses are primarily attributed to an funding loss exceeding 1.3 billion yuan from its three way partnership with Volkswagen in Anhui, and roughly 1.1 billion yuan in asset impairment provisions.
Moreover, JAC has made substantial investments in its upcoming premium sedan challenge, the Maextro S800, which was developed in partnership with Huawei. Stories point out a complete funding of round 3.981 billion yuan(523.82 million USD) within the Maextro tremendous manufacturing facility, with an extra 5.875 billion yuan allotted to develop a high-end clever electrical platform for the challenge.
In 2024, the common promoting worth of JAC’s passenger automobiles was simply 73,000 yuan (10,000 USD). The query is whether or not the Huawei-backed Maextro S800, set to formally launch in Could with a goal worth vary of 1 million to 1.5 million yuan (131,600 to $197,400 USD), can efficiently penetrate the high-end market.
Internet revenue plummets by 1277.59%
JAC Motors’ 2024 monetary report reveals an working income of 42.116 billion yuan(5,541.58 million USD), a 6.28% lower year-on-year. The web loss attributable to shareholders of the listed firm reached 1.784 billion yuan(234.74 million USD), a dramatic 1277.59% decline, shifting from revenue to a document loss since its itemizing. The web loss, excluding non-recurring good points and losses, was even greater at 2.741 billion yuan(360.66 million USD).
The monetary report additionally detailed non-recurring objects, together with good points from the disposal of non-current property amounting to 592 million yuan(77.89 million USD) in 2024 (in comparison with 648 million yuan or 85.26 million USD in 2023 and 74 million yuan or 10.21 million USD in 2022), and authorities subsidies of 256 million yuan(35.33 million USD) in 2024 (considerably decrease than the 1.341 billion yuan or 185.06 million USD in 2023 and 1.205 billion yuan or 166.29 million USD in 2022).
Regardless of these asset disposals and substantial authorities subsidies, JAC Motors nonetheless incurred a big loss in 2024, highlighting potential weaknesses in its core enterprise’s capacity to generate revenue.
By way of gross sales quantity, JAC Motors bought 403,100 automobiles and chassis in 2024, a 7.42% lower year-on-year. Passenger car gross sales totaled 166,800 items, down by 16.59%, whereas business car gross sales noticed a marginal improve of 0.38% to 236,300 items, representing solely 883 extra items bought than in 2023.
The gross sales figures for the start of 2025 additionally paint a difficult image. In January, JAC Motors’ whole gross sales have been 35,560 items, a 9.39% year-on-year lower, adopted by 26,941 items in February, a 9.17% decline. Notably, JAC Motors’ month-to-month gross sales have skilled a year-on-year lower for 5 consecutive months as of February 2025, with declines of 20.15%, 15.68%, and 11.06% in October, November, and December 2024, respectively.
The declining efficiency has additionally decreased JAC Motors’ workforce. The full variety of staff decreased from 23,064 in 2023 to 21,408 in 2024, a discount of 1,656. The manufacturing division was significantly affected, with a lower of two,476 staff. Conversely, the variety of technical personnel elevated.
Over 186 million USD funding loss from Volkswagen enterprise
JAC Motors had already indicated in its January revenue warning that the first causes for the anticipated loss in 2024 have been the poor efficiency of its three way partnership with Volkswagen Anhui, which resulted in an funding lack of roughly 1.35 billion yuan(186.3 million USD) and asset impairment provisions of round 1.1 billion yuan(151.8 million USD).
The official monetary report confirms Volkswagen Anhui’s funding lack of 1.35 billion yuan(186.3 million USD) in 2024, a big improve from the lack of 450 million yuan(61.88 million USD) in 2023.
Volkswagen Anhui, established in 2017 as a three way partnership between Volkswagen Group and JAC Motors, was positioned by Volkswagen as its first devoted new vitality car three way partnership in China and its first three way partnership with full operational administration rights, accountable for product and digital growth. Initially named JAC Volkswagen, Volkswagen Group later elevated its stake and took over administration, formally renaming it Volkswagen Anhui.
Expectations for Volkswagen Anhui have been excessive, with the development of Volkswagen Group’s third plant in China. In July 2024, Volkswagen Anhui launched its first mannequin, the ID.UNYX (“ID.与众”), that includes Volkswagen’s “golden brand” and priced between 209,900 and 249,900 yuan(28,861 and 34,361 USD). It was marketed as Volkswagen’s first clever pure electrical coupe SUV.
Nonetheless, the extremely anticipated mannequin failed to realize traction out there. Regardless of its premium “golden brand” design, the ID.UNYX was thought of undersized and under-equipped in comparison with opponents in the identical worth vary, suffered from low model recognition, and relied on a self-built distribution community, finally resulting in poor gross sales. Third-party information suggests month-to-month gross sales have been solely round 100 items.
To revive gross sales, Volkswagen Anhui shortly launched a facelifted model of the ID.UNYX in November 2024, with costs decreased by 40,000 yuan(5,500 USD) throughout the vary, now priced between 169,900 and 209,900 yuan(23,361 and 28,861 USD). The up to date mannequin largely retained the identical options as its predecessor however featured a decreased battery capability.
Nonetheless, Volkswagen Anhui’s gross sales community stays underdeveloped. Official information reveals that by the tip of December 2024, the corporate had established 60 gross sales retailers masking 31 cities. The goal is to broaden this community to 70 cities by 2025. With low model consciousness and restricted retailer protection, a big turnaround in gross sales for the ID.UNYX seems difficult.
Can Huawei-backed Maextro be the savior?
In its monetary report, JAC Motors acknowledged its dedication to a twin growth path of “impartial growth + open cooperation” and emphasised the deepening of its partnership with Huawei to collectively construct the high-end luxurious model, Maextro.
It’s evident that JAC Motors depends on its partnership with Volkswagen Group and views its collaboration with Huawei and the Maextro model as a possible lifeline.
The Maextro S800, collectively developed by JAC and Huawei, was formally unveiled in November 2024, with a pre-sale worth vary of 1 million to 1.5 million yuan(131,600 to $197,400 USD). Official information claimed 2,108 pre-orders inside 48 hours. In December of the identical yr, the Maextro tremendous manufacturing facility was formally accomplished, with a complete funding of roughly 3.981 billion yuan(523.82 million USD). Xiang Xingchu, Secretary of the Get together Committee, Chairman, and Common Supervisor of JAC Motors, acknowledged on the completion ceremony that the manufacturing facility is predicted to realize an annual output worth exceeding 100 billion yuan(13.75 billion USD) as soon as it reaches full manufacturing.
JAC Motors continues to spend money on the Maextro challenge. In January, the Shanghai Inventory Alternate accepted its utility for a personal share placement. In keeping with JAC Motors’ fundraising prospectus, the overall quantity of funds to be raised won’t exceed 4.9 billion yuan(673.75 million USD), and after deducting issuance bills, the funds might be completely used for the event of a high-end clever electrical platform, which is the Maextro challenge. The full funding on this challenge is as excessive as 5.875 billion yuan(807.81 million USD), and the fashions will cowl main passenger car segments reminiscent of sedans, SUVs, and MPVs, indicating that the Maextro model will lengthen past the ultra-luxury S800 sedan to incorporate ultra-luxury SUVs and MPVs sooner or later.
Nonetheless, JAC Motors’ efficiency within the passenger car sector has been typically disappointing. In 2024, its passenger car gross sales have been 166,763 items, a 16.59% lower from the earlier yr. Within the first two months of this yr, whereas its SUV fashions maintained progress, its MPV gross sales declined by 9.61% from the earlier yr, and sedan gross sales plummeted by 37.26%.
Based mostly on a tough calculation utilizing JAC Motors’ passenger car income and gross sales quantity in 2024, the common promoting worth of its passenger vehicles was solely 73,000 yuan(10,000 USD). Regardless of Huawei’s backing, it stays to be seen whether or not JAC Motors can efficiently set up itself within the million-yuan luxurious automobile market.
Regardless of the poor monetary outcomes for 2024, JAC Motors acknowledged in its monetary report that it tasks gross sales of 430,000 automobiles in 2025, a year-on-year improve of 6.67%, and expects whole working income of 46 billion yuan(6.325 billion USD), a year-on-year improve of 9.00%. Attaining it will rely upon whether or not Volkswagen Anhui’s ID.UNYX can flip its gross sales round and in the marketplace reception of the Maextro S800, which is scheduled to formally launch in Could.
