HEFEI, Anhui – Jianghuai Automobile Co., Ltd. (JAC) said in a statement on October 9 that it expects net profit for the January-September period to fall 80 percent due to fading subsidies for new energy vehicles and falling vehicle sales.
Based on the ¥818 million net profit achieved during the same period in 2016, net profit for the January-September period is expected to be around ¥164 million. Based on a net profit of ¥345 million for the first six months of 2017, JAC incurred a loss of about ¥180 million in Q3.
The domestic-listed automaker and partner of Volkswagen sold 382,700 vehicles in the first nine months of the year, down about 20 percent year-on-year. While battery electric vehicle sales surged about 28 percent to 17,500 units during the period, lower subsidies on NEVs at both the national and local levels took a toll on JAC’s net profit.
The statement from JAC showed that it received ¥670 million in government subsidies last year but only ¥124 million in the first half of 2017.