BAIC Blue Valley and JAC Team Up with Huawei, Investing $15.8B to Launch New Models Amid $8.4B Loss

BAIC BluePark and JAC Motors recently issued profit warnings for 2025, reporting combined losses exceeding RMB 6 billion. BAIC BluePark expects a net loss of RMB 4.35–4.65 billion. Although this represents a year-over-year narrowing of losses, the company has yet to achieve economies of scale due to heavy investments in R&D and channel development. Its 2025 vehicle sales reached 209,600 units, up 84.06% year-on-year. The company plans to invest over RMB 5.5 billion to upgrade three models under its Stelato brand—of which the S9 and S9T have already launched, while a B+-segment SUV is currently undergoing testing. JAC Motors forecasts a net loss of RMB 1.68 billion, primarily due to international market volatility and a RMB 1.08 billion investment loss related to its joint venture with Volkswagen Anhui. To reverse its situation, JAC intends to raise RMB 3.5 billion and allocate RMB 5.875 billion toward developing a premium intelligent EV platform. A sedan based on this platform has already been launched, with an SUV and an MPV currently in the planning stages. Both automakers are deepening their collaboration with Huawei, committing a combined minimum investment of RMB 11.3 billion to accelerate the launch of new products.