GAC Group Reports Over 2.5 Billion Yuan Loss in First Half, Vehicle Sales Down 12% Year-on-Year

Guangzhou Automobile Group Co., Ltd.When the semi-annual report starkly showed a loss of 2.5 billion yuan, public attention focused on the company's leader. However, attributing the rise and fall of a complex enterprise solely to an individual is like blaming a raging tidal wave on a single fallen leaf—what lies behind this is, in fact, a projection of the collective anxiety experienced during the painful transition period of China’s automotive industry.

Data shows that in the first half of 2025, GAC Group,Revenue42.166 billion yuan, a year-on-year decrease of 7.95%;Net profitA loss of 2.538 billion yuan, same period last year.Net Profit15.16 billion yuan, turning from profit to loss, a year-on-year plunge of 267.39%; net loss after deducting non-recurring gains and losses was 2.945 billion yuan, compared with 338 million yuan in the same period last year, also turning from profit to loss, a year-on-year plunge of 771.11%.

The financial report indicates that the main factors affecting performance changes are: 1. In the first half of 2025, due to intense competition in the domestic automotive industry and rapid upgrading of demand structure, GAC Group achieved automobile sales of 755,300 units, a year-on-year decrease of 12.48%; 2. Several key new energy vehicle models launched during the reporting period are still in the ramp-up stage and have not reached planned targets. Meanwhile, due to intense competition in the domestic automotive industry, revenue has declined; 3. There is a structural mismatch between the existing sales system and the needs of the new energy transition, with sales channels primarily dominated by traditional 4S stores. The development of new channels such as direct sales, agency, and the internet lags behind the industry, and the efficiency improvement of the marketing system is slow; 4. The integration and reform of the self-owned brand's operations have yet to show significant results. During the reporting period, the company is continuously improving the efficiency of new product development and cost control in various fields.

In addition, in the first half of this year, GAC Group produced and sold 801,700 and 755,300 vehicles, respectively, representing a year-on-year decrease of 6.73% and 12.48%.Sales of new energy vehicles15.41 million vehicles were sold, a year-on-year decrease of 6.08%; sales of energy-saving vehicles reached 211,600 units, a year-on-year increase of 13.43%. During the reporting period, GAC Group’s energy-saving and...New Energy Vehicle SalesThe proportion increased to 48.43%.

GAC GroupIn his speech, Chairman Feng Xingya stated that the Group will accelerate breakthroughs in overseas markets and expand growth opportunities. The Group is unwaveringly committed to mobilizing its entire strength to develop international markets, focusing resources on planning and building core markets with annual sales volumes ranging from 50,000 to 100,000 units. By deeply understanding the needs of key regional market customers, the Group will ensure precise alignment between products and overseas markets, concentrating on creating multiple global star products with planned annual sales of 50,000 to 100,000 units. The construction and layout of overseas KD (knock-down) assembly plants will be accelerated to enhance the scale and capacity utilization of KD projects. The overseas warehousing network will be improved, an active after-sales service system will be established, and localized operations will be deepened. Efforts will be made to promote the international expansion of supporting businesses related to automotive finance, mobility services, logistics and transportation, auto parts production and supply, and energy ecology, thereby continuously enhancing system capabilities.

Source: Electric Eel Express