Chinese automaker JAC Motors has revealed a challenging financial year 2024, marked by a 16.59% year-on-year decline in passenger vehicle sales and a 6.28% drop in revenue. The company reported a substantial net loss of 1.784 billion yuan (234.74 million USD), a staggering 1277.59% decrease compared to the previous year, alongside a reduction of 1,656 in its total workforce.
The significant losses are primarily attributed to an investment loss exceeding 1.3 billion yuan from its joint venture with Volkswagen in Anhui, and approximately 1.1 billion yuan in asset impairment provisions.
Furthermore, JAC has made substantial investments in its upcoming premium sedan project, the Maextro S800, which was developed in partnership with Huawei. Reports indicate a total investment of around 3.981 billion yuan(523.82 million USD) in the Maextro super factory, with an additional 5.875 billion yuan allocated to develop a high-end intelligent electric platform for the project.
In 2024, the average selling price of JACβs passenger vehicles was just 73,000 yuan (10,000 USD). The question is whether the Huawei-backed Maextro S800, set to officially launch in May with a target price range of 1 million to 1.5 million yuan (131,600 to $197,400 USD), can successfully penetrate the high-end market.
Net profit plummets by 1277.59%
JAC Motorsβ 2024 financial report shows an operating revenue of 42.116 billion yuan(5,541.58 million USD), a 6.28% decrease year-on-year. The net loss attributable to shareholders of the listed company reached 1.784 billion yuan(234.74 million USD), a dramatic 1277.59% decline, shifting from profit to a record loss since its listing. The net loss, excluding non-recurring gains and losses, was even higher at 2.741 billion yuan(360.66 million USD).
The financial report also detailed non-recurring items, including gains from the disposal of non-current assets amounting to 592 million yuan(77.89 million USD) in 2024 (compared to 648 million yuan or 85.26 million USD in 2023 and 74 million yuan or 10.21 million USD in 2022), and government subsidies of 256 million yuan(35.33 million USD) in 2024 (significantly lower 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).
Despite these asset disposals and substantial government subsidies, JAC Motors still incurred a significant loss in 2024, highlighting potential weaknesses in its core businessβs ability to generate profit.
In terms of sales volume, JAC Motors sold 403,100 vehicles and chassis in 2024, a 7.42% decrease year-on-year. Passenger vehicle sales totaled 166,800 units, down by 16.59%, while commercial vehicle sales saw a marginal increase of 0.38% to 236,300 units, representing only 883 more units sold than in 2023.
The sales figures for the beginning of 2025 also paint a challenging picture. In January, JAC Motorsβ total sales were 35,560 units, a 9.39% year-on-year decrease, followed by 26,941 units in February, a 9.17% decline. Notably, JAC Motorsβ monthly sales have experienced a year-on-year decrease for five 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 performance has also reduced JAC Motorsβ workforce. The total number of employees decreased from 23,064 in 2023 to 21,408 in 2024, a reduction of 1,656. The production department was particularly affected, with a decrease of 2,476 employees. Conversely, the number of technical personnel increased.
Over 186 million USD investment loss from Volkswagen venture
JAC Motors had already indicated in its January profit warning that the primary reasons for the anticipated loss in 2024 were the poor performance of its joint venture with Volkswagen Anhui, which resulted in an investment loss of approximately 1.35 billion yuan(186.3 million USD) and asset impairment provisions of around 1.1 billion yuan(151.8 million USD).
The official financial report confirms Volkswagen Anhuiβs investment loss of 1.35 billion yuan(186.3 million USD) in 2024, a significant increase from the loss of 450 million yuan(61.88 million USD) in 2023.
Volkswagen Anhui, established in 2017 as a joint venture between Volkswagen Group and JAC Motors, was positioned by Volkswagen as its first dedicated new energy vehicle joint venture in China and its first joint venture with full operational management rights, responsible for product and digital development. Initially named JAC Volkswagen, Volkswagen Group later increased its stake and took over management, officially renaming it Volkswagen Anhui.
Expectations for Volkswagen Anhui were high, with the construction of Volkswagen Groupβs third plant in China. In July 2024, Volkswagen Anhui launched its first model, the ID.UNYX (βID.δΈδΌβ), featuring Volkswagenβs βgolden logoβ and priced between 209,900 and 249,900 yuan(28,861 and 34,361 USD). It was marketed as Volkswagenβs first intelligent pure electric coupe SUV.
However, the highly anticipated model failed to gain traction in the market. Despite its premium βgolden logoβ design, the ID.UNYX was considered undersized and under-equipped compared to competitors in the same price range, suffered from low brand recognition, and relied on a self-built distribution network, ultimately leading to poor sales. Third-party data suggests monthly sales were only around a hundred units.
To revive sales, Volkswagen Anhui quickly launched a facelifted version of the ID.UNYX in November 2024, with prices reduced by 40,000 yuan(5,500 USD) across the range, now priced between 169,900 and 209,900 yuan(23,361 and 28,861 USD). The updated model largely retained the same features as its predecessor but featured a reduced battery capacity.
However, Volkswagen Anhuiβs sales network remains underdeveloped. Official data shows that by the end of December 2024, the company had established 60 sales outlets covering 31 cities. The aim is to expand this network to 70 cities by 2025. With low brand awareness and limited store coverage, a significant turnaround in sales for the ID.UNYX appears challenging.
Can Huawei-backed Maextro be the savior?
In its financial report, JAC Motors stated its commitment to a dual development path of βindependent development + open cooperationβ and emphasized the deepening of its partnership with Huawei to jointly build the high-end luxury brand, Maextro.
It is evident that JAC Motors relies on its partnership with Volkswagen Group and views its collaboration with Huawei and the Maextro brand as a potential lifeline.
The Maextro S800, jointly developed by JAC and Huawei, was officially unveiled in November 2024, with a pre-sale price range of 1 million to 1.5 million yuan(131,600 to $197,400 USD). Official data claimed 2,108 pre-orders within 48 hours. In December of the same year, the Maextro super factory was officially completed, with a total investment of approximately 3.981 billion yuan(523.82 million USD). Xiang Xingchu, Secretary of the Party Committee, Chairman, and General Manager of JAC Motors, stated at the completion ceremony that the factory is expected to achieve an annual output value exceeding 100 billion yuan(13.75 billion USD) once it reaches full production.
JAC Motors continues to invest in the Maextro project. In January, the Shanghai Stock Exchange accepted its application for a private share placement. According to JAC Motorsβ fundraising prospectus, the total amount of funds to be raised will not exceed 4.9 billion yuan(673.75 million USD), and after deducting issuance expenses, the funds will be entirely used for the development of a high-end intelligent electric platform, which is the Maextro project. The total investment in this project is as high as 5.875 billion yuan(807.81 million USD), and the models will cover major passenger vehicle segments such as sedans, SUVs, and MPVs, indicating that the Maextro brand will extend beyond the ultra-luxury S800 sedan to include ultra-luxury SUVs and MPVs in the future.
However, JAC Motorsβ performance in the passenger vehicle sector has been generally disappointing. In 2024, its passenger vehicle sales were 166,763 units, a 16.59% decrease from the previous year. In the first two months of this year, while its SUV models maintained growth, its MPV sales declined by 9.61% from the previous year, and sedan sales plummeted by 37.26%.
Based on a rough calculation using JAC Motorsβ passenger vehicle revenue and sales volume in 2024, the average selling price of its passenger cars was only 73,000 yuan(10,000 USD). Despite Huaweiβs backing, it remains to be seen whether JAC Motors can successfully establish itself in the million-yuan luxury car market.
Despite the poor financial results for 2024, JAC Motors stated in its financial report that it projects sales of 430,000 vehicles in 2025, a year-on-year increase of 6.67%, and expects total operating revenue of 46 billion yuan(6.325 billion USD), a year-on-year increase of 9.00%. Achieving this will depend on whether Volkswagen Anhuiβs ID.UNYX can turn its sales around and on the market reception of the Maextro S800, which is scheduled to officially launch in May.
