Four Listed Automakers Forecast H1 Losses Amid Soaring Raw Material Costs and Intensifying Competition

As of July 14, 2026, four automakers—BAIC BluePark, Seres, GAC Group, and JAC Motors—have released their earnings forecasts for the first half of 2026, all projecting net losses attributable to shareholders of listed companies. BAIC BluePark expects a net loss of RMB 1.77 billion to RMB 1.97 billion for the first half of 2026. The company stated that although vehicle sales volume increased year-on-year in the first half, rising costs due to volatility in upstream raw material prices exerted significant pressure. Despite efforts to optimize product mix and implement cost-reduction and efficiency-enhancement measures, profitability only saw marginal improvement. In 2025, the company reported revenue of RMB 27.94 billion (up 92.5% year-on-year) and a net loss of RMB 4.56 billion. In Q1 2026, revenue reached RMB 4.10 billion (up 8.7% year-on-year), with the net loss narrowing to RMB 870 million. BAIC BluePark is controlled by BAIC Group and owns the Arcfox, Stelato, and BEIJING brands. Arcfox is a premium smart EV brand produced by a China-based joint venture between BAIC BluePark and Magna. Stelato is a collaborative brand between BAIC and Huawei, currently offering two models priced above RMB 300,000—the Stelato S9 and S9T—with plans to launch a rugged luxury SUV and a premium luxury MPV in the second half of 2026 to achieve full-category coverage. The company previously announced its intention to change its name to “BAIC Arcfox New Energy Vehicle Co., Ltd.” Seres forecasts a net loss of RMB 1.5 billion to RMB 1.8 billion for H1 2026, compared to a net profit of RMB 2.941 billion in the same period last year; its adjusted net loss (excluding non-recurring items) is expected to be RMB 2.2 billion to RMB 2.5 billion. Its core subsidiary, Aito Motor, is projected to report a net loss of RMB 1.05 billion to RMB 1.3 billion for H1 2026, with Q2 alone accounting for a net loss of RMB 1.9 billion to RMB 2.15 billion. The company attributed the losses to rising costs driven by increases in prices of storage chips, industrial metals, and lithium carbonate, as well as impairment adjustments on assets with limited adaptability due to technological iteration and model transitions. Seres achieved its first annual profit in 2024, with net profit exceeding RMB 5 billion; in 2025, it reported revenue of RMB 165.05 billion and net profit of approximately RMB 5.96 billion. In Q1 2026, revenue was RMB 25.746 billion (up 34.46% year-on-year), but adjusted net profit plummeted 73.87% year-on-year to RMB 1.03 billion. GAC Group anticipates a net loss of RMB 4.06 billion to RMB 4.57 billion for H1 2026, compared to a loss of RMB 2.538 billion in the same period last year. The company cited several key factors: intensified market competition led its自主品牌 (self-owned brands) to increase sales investments, while shifts in product mix and higher raw material costs eroded margins; declining sales, increased investment, and rising costs at its joint-venture brands reduced investment income; and foreign exchange losses arose from currency fluctuations. In Q1 2026, GAC Group reported revenue of RMB 20.039 billion (up 1.98% year-on-year) and a net loss of RMB 656 million, narrowing by 10.38% year-on-year; however, its adjusted net loss widened by 55.03% year-on-year to RMB 1.384 billion. JAC Motors expects a net loss of RMB 740 million for H1 2026, slightly improved from a loss of RMB 773 million in the same period last year. The company attributed the loss primarily to declining sales amid intensifying market competition, a negative investment income of RMB 130 million from its equity investees, and approximately RMB 140 million in financial expenses due to exchange rate fluctuations. JAC has been reporting continuous losses since 2024: in 2024, revenue was RMB 42.202 billion (down 6.28% year-on-year) with a net loss of RMB 1.784 billion; in 2025, revenue rose to RMB 46.476 billion (up 10.35% year-on-year), and the net loss narrowed slightly to RMB 1.703 billion. All four companies indicated that their H1 2026 performance was pressured by multiple factors, including rising raw material prices and intensifying industry competition.