JAC Motors Forecasts 2025 Loss of RMB 1.68 Billion as Volkswagen Anhui Drags Further

JAC Motors recently released its 2025 annual earnings forecast, projecting a net loss attributable to shareholders of approximately RMB 1.68 billion. Although this represents a year-over-year reduction in losses by RMB 1.04 billion, the company’s net loss excluding non-recurring items widened to RMB 2.47 billion, marking its second consecutive year of net losses. Key factors contributing to the losses include a decline in export business due to adverse international conditions and intensified overseas competition, as well as poor performance by its joint venture with Volkswagen—Volkswagen Anhui—which led JAC to recognize an investment loss of RMB 1.08 billion. The first model launched by Volkswagen Anhui, the ID.UNYX (later renamed the 2025 Volkswagen Zhongyou 06), has underperformed in the market, with sales remaining sluggish despite price cuts. Over the past three years, Volkswagen Anhui has accumulated losses totaling RMB 11.5 billion, significantly straining JAC’s financial position. In 2026, the “Golden Label” Volkswagen brand plans to launch multiple new models based on a jointly developed platform with XPeng and expand its sales channels. However, mounting financial pressure looms—if these new products fail to secure a clear market positioning, the venture may be forced to pivot into an export-focused contract manufacturer.