In recent years, the Chinese automotive industry has been facing severe challenges, with intensified price wars and high costs of transitioning from traditional fuel vehicles to new energy vehicles. Among them, the automotive giant GAC Group has seen its performance decline for two consecutive years. In 2025, GAC Group incurred a loss of nearly 8.8 billion RMB, marking the first full-year loss since its listing.
On Monday, March 30th,
GAC Group’s (HK2238) stock price on the Hong Kong Stock Exchange experienced a significant drop, closing with a decrease of 6.5%,
at 3.00 Hong Kong dollars.
On the news front, the annual report released by GAC Group on the evening of March 27th showed that in 2025, the company’s total operating income was 96.542 billion RMB, a year-on-year decrease of 10.43%; the net loss attributable to shareholders of the listed company was 8.784 billion RMB, transforming from profit to loss year-on-year, a decrease of approximately 1166.51% compared to the same period last year. Looking at the quarterly performance, the fourth quarter recorded a net loss of 4.472 billion RMB, surpassing the total losses of the previous three quarters.
This marks the first full-year loss for GAC Group since its listing.
The report mentioned that in 2025, faced with systemic challenges brought by the reconstruction of the industry ecosystem, demand structure, and market competition, the group’s production and operation continued to be under pressure. The annual sales volume of automobiles was 1.7444 million units and 1.7215 million units, a year-on-year decrease of 8.98% and 14.06% respectively.
In 2025, GAC Group (HK2238) sold a total of 1.7215 million vehicles, a decrease of 14.06% year-on-year. Among them, sales of the two major independent brands, Trumpchi and Aion, decreased by 23.02% and 22.62% respectively, dropping to 319,200 units and 290,100 units. The sales of the joint venture GAC Honda (HMC) decreased by 25.22% year-on-year, the largest decline, reaching 351,900 units. GAC Toyota stabilized its sales volume, achieving a slight increase year-on-year.
According to “New Yellow River” reports, experts believe that the industry elimination round has entered a deep zone, and in the next two to three years, more traditional car companies will face similar financial pressures. The success of GAC largely depends on whether the new brands can establish themselves, whether overseas markets can be developed on a larger scale, and whether cost control measures can be effectively implemented. Any issues in these three aspects could potentially affect the overall pace of transformation.
Public data shows that Guangzhou Automobile Group Co., Ltd. (referred to as GAC Group) was established on June 6, 1997. It is a state-owned holding enterprise listed on the A and H shares under the supervision of the Guangzhou State-owned Assets Supervision and Administration Commission. It owns more than twenty subsidiaries and research institutions including GAC Trumpchi, Aion, Honda, Toyota, and other brands covering both traditional fuel vehicles and new energy sectors.