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Net Profit Declines: Dongfeng Group Issues Profit Warning

Auto Industry Focus 2025-08-11 10:55:47

August 8th,Dongfeng Motor Corporation LimitedDongfeng Motor Group Co., Ltd. (hereinafter referred to as "Dongfeng Motor Group") has issued a "Profit Warning" announcement. The announcement indicates that in the first half of 2025, the net profit attributable to shareholders of Dongfeng Motor Group is expected to be between 30 million and 70 million yuan, representing a year-on-year decline of 90% to 95%.

Regarding the reasons for the performance changes, Dongfeng Motor Corporation stated that the main factors include: 1) The continued decline of the joint venture non-luxury brand market, which led to a significant decrease in the sales and profits of the joint venture passenger vehicle business; 2) In response to intense market competition, the company has increased investment in R&D, brand building, channel development, and marketing in its self-owned business sector.

As of now, in the passenger vehicle sector, Dongfeng Motor Corporation has established joint venture brands such as Dongfeng Nissan, Dongfeng Honda, and Dongfeng Peugeot Citroën (DPCA) through partnerships with numerous internationally renowned automobile brands. Its self-owned brands include Dongfeng Passenger Vehicle, MHero Technology, Dongfeng Voyah, and Dongfeng Liuzhou Motor, among others.

In terms of sales, official data shows that in the first half of 2025, Dongfeng Motor Corporation achieved a cumulative sales volume of 823,900 vehicles, a year-on-year decline of 14.7%. Among them, new energy vehicles had a cumulative sales volume of 204,400 units, a year-on-year increase of 33.0%. In terms of specific brands, Dongfeng Nissan (including Dongfeng Infiniti and Venucia) achieved a cumulative sales volume of 252,800 units in the first half of the year, down 23.5% year-on-year; another Japanese joint venture brand, Dongfeng Honda, recorded cumulative sales of 149,000 units, down 37.4% year-on-year. Apart from these two major joint venture brands, as one of the earliest joint venture automakers to enter the Chinese market, Dongfeng PSA Peugeot Citroën also faced less than ideal sales, with cumulative sales of 27,000 units in the first half of the year, down 28.3% year-on-year.

In terms of independent brands, Dongfeng Liuzhou Motor's cumulative sales in the first half of the year were 52,700 units, a year-on-year decline of 15.1%. The independent segment, Dongfeng Passenger Vehicle, achieved cumulative sales of 104,800 units, a year-on-year increase of 23.0%. Voyah Automobile's cumulative sales reached 56,100 units, a year-on-year growth of 84.8%.

Simply put, the current new energy vehicle market is in a stage of rapid development with intense competition. The leading joint venture car companies that previously dominated the market are generally experiencing a decline in sales. The strong push by domestic brands in the plug-in hybrid sector has eroded the market advantages of joint venture brands. Dongfeng Motor Corporation is also facing the problem of declining sales of its joint venture brands, which has to some extent affected its overall performance.

For Dongfeng Motor Corporation, there is still much room for improvement and development in the areas of its own brands and new energy vehicles. This may also be a new growth point for the company's future sales growth. Against the backdrop of self-owned brands occupying an absolute dominant position in the market, "how to more quickly develop self-owned brands and new energy vehicles to achieve a rebound in sales and an enhancement of market position" will be the top priority for Dongfeng Motor Corporation to address for a long time to come.Dongfeng Motor CorporationWhether it can break through and turn the situation around remains to be seen.

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Net Profit Declines: Dongfeng Group Issues Profit Warning

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