GAC Group Forecasts Net Loss of RMB 8–9 Billion in 2025

On January 30, GAC Group announced that it expects a net loss attributable to shareholders of the parent company of RMB 8.0 billion to RMB 9.0 billion for the full year of 2025. The company stated that intensifying competition in the automotive industry and rapid restructuring of the industrial ecosystem have significantly impacted its performance. Although vehicle sales have shown continuous sequential improvement since the second quarter, annual sales volumes still fell short of expectations. In response to evolving market conditions, GAC has increased its sales-related expenditures. Additionally, adjustments to the product mix of its self-owned new energy vehicle brands have led to higher impairment provisions for intangible assets and inventory. Furthermore, certain joint ventures have accelerated their transition toward new energy vehicles and restructured production lines, triggering asset impairments and further reducing the company’s investment income. The combined effect of these factors has resulted in a significant year-over-year decline in full-year earnings.