GAC Group Forecasts a Net Loss of RMB 8–9 Billion Despite Sequential Sales Growth

[Earnings Warning] GAC Group expects a net loss of RMB 8 to 9 billion for 2025, swinging from profit to loss year-over-year.

Key Developments: Sequential Sales Growth Amid Annual Decline

Total sales in 2025 reached 1.7215 million units, down 14.06% year-over-year, but recorded sequential growth for three consecutive quarters, with Q4 sales hitting 537,800 units, a sharp 25.56% increase from the prior quarter. Overseas sales of its self-owned brands approached 130,000 units, up 47% year-over-year.

Strategic Underpinnings: Price Wars and Transformation Weigh on Profits

Intensified industry-wide price competition and adjustments in its new energy vehicle (NEV) portfolio led GAC to ramp up promotions, pushing gross margins into negative territory. Additionally, production line transformation triggered higher asset impairment losses, while investment income from joint ventures (such as GAC Honda and GAC Toyota) declined.

Industry Impact: Accelerated Integration and Global Expansion

GAC is advancing integration of its self-owned brands (merging Hyper and Aion, while keeping Trumpchi independent) and collaborating with Huawei to launch the premium brand “Qijing,” with its first model scheduled for market launch in June 2026. The company also plans to build a manufacturing plant in Brazil in the second half of 2026, establishing a localized R&D and supply chain ecosystem.