Chinese language automaker JAC Motors has revealed a difficult monetary 12 months 2024, marked by a 16.59% year-on-year decline in passenger automobile gross sales and a 6.28% drop in income. The corporate reported a considerable web lack of 1.784 billion yuan (234.74 million USD), a staggering 1277.59% lower in comparison with the earlier 12 months, alongside a discount of 1,656 in its complete 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 undertaking, 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 unit, with a further 5.875 billion yuan allotted to develop a high-end clever electrical platform for the undertaking.
In 2024, the typical promoting value 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 value vary of 1 million to 1.5 million yuan (131,600 to $197,400 USD), can efficiently penetrate the high-end market.
Web 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 online 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 online loss, excluding non-recurring positive aspects and losses, was even larger at 2.741 billion yuan(360.66 million USD).
The monetary report additionally detailed non-recurring gadgets, together with positive aspects from the disposal of non-current belongings 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 major loss in 2024, highlighting potential weaknesses in its core enterprise’s capability 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 automobile gross sales totaled 166,800 models, down by 16.59%, whereas industrial automobile gross sales noticed a marginal enhance of 0.38% to 236,300 models, representing solely 883 extra models bought than in 2023.
The gross sales figures for the start of 2025 additionally paint a difficult image. In January, JAC Motors’ complete gross sales have been 35,560 models, a 9.39% year-on-year lower, adopted by 26,941 models 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 lowered JAC Motors’ workforce. The overall variety of workers decreased from 23,064 in 2023 to 21,408 in 2024, a discount of 1,656. The manufacturing division was notably affected, with a lower of two,476 workers. 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 major enhance 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 power automobile three way partnership in China and its first three way partnership with full operational administration rights, liable for product and digital improvement. 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-about undersized and under-equipped in comparison with rivals in the identical value vary, suffered from low model recognition, and relied on a self-built distribution community, finally resulting in poor gross sales. Third-party knowledge suggests month-to-month gross sales have been solely round 100 models.
To revive gross sales, Volkswagen Anhui shortly launched a facelifted model of the ID.UNYX in November 2024, with costs lowered 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 lowered battery capability.
Nonetheless, Volkswagen Anhui’s gross sales community stays underdeveloped. Official knowledge reveals that by the top of December 2024, the corporate had established 60 gross sales shops overlaying 31 cities. The purpose is to increase this community to 70 cities by 2025. With low model consciousness and restricted retailer protection, a major 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 improvement path of “unbiased improvement + 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 value vary of 1 million to 1.5 million yuan(131,600 to $197,400 USD). Official knowledge claimed 2,108 pre-orders inside 48 hours. In December of the identical 12 months, the Maextro tremendous manufacturing unit was formally accomplished, with a complete funding of roughly 3.981 billion yuan(523.82 million USD). Xiang Xingchu, Secretary of the Social gathering Committee, Chairman, and Common Supervisor of JAC Motors, acknowledged on the completion ceremony that the manufacturing unit is predicted to attain 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 undertaking. In January, the Shanghai Inventory Alternate accepted its software for a non-public share placement. Based on 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 can be solely used for the event of a high-end clever electrical platform, which is the Maextro undertaking. The overall funding on this undertaking is as excessive as 5.875 billion yuan(807.81 million USD), and the fashions will cowl main passenger automobile segments resembling sedans, SUVs, and MPVs, indicating that the Maextro model will prolong past the ultra-luxury S800 sedan to incorporate ultra-luxury SUVs and MPVs sooner or later.
Nonetheless, JAC Motors’ efficiency within the passenger automobile sector has been typically disappointing. In 2024, its passenger automobile gross sales have been 166,763 models, a 16.59% lower from the earlier 12 months. Within the first two months of this 12 months, whereas its SUV fashions maintained progress, its MPV gross sales declined by 9.61% from the earlier 12 months, and sedan gross sales plummeted by 37.26%.
Primarily based on a tough calculation utilizing JAC Motors’ passenger automobile income and gross sales quantity in 2024, the typical promoting value of its passenger automobiles 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 initiatives gross sales of 430,000 automobiles in 2025, a year-on-year enhance of 6.67%, and expects complete working income of 46 billion yuan(6.325 billion USD), a year-on-year enhance of 9.00%. Attaining this may rely on 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.
