On October 9, 2026, the stock price of Chinese car company Jianghuai Auto dropped by 7.97%, following a halt in trading the previous day, causing the company’s market value to evaporate by approximately 10.6 billion yuan over the two trading days. The collaboration between the company and Huawei in creating the Junjie V800 was brought into question recently, as three test cars were reported to have experienced brake pedal bracket fractures during emergency braking.
The stock opened on October 9 with a limit-down, reaching a low of 22.25 yuan before recovering to close at 22.75 yuan. This was a significant decline from the previous day’s closing price of 24.72 yuan, representing a 10.01% decrease.
Based on the closing prices, the company’s total market value decreased from 61.922 billion yuan on September 30 to 51.283 billion yuan on October 8 and 9, marking a reduction of approximately 10.639 billion yuan. At the time of the trading halt on the 9th, Jianghuai Auto’s market value briefly dropped to around 50.155 billion yuan, a decrease of nearly 11.8 billion yuan from September 30.
Junjie Auto issued a statement on the 8th, announcing plans to optimize the relevant component design and provide free upgrades for delivered vehicles. However, the stock price of Jianghuai Auto continued to decline the day after the statement was released.
Junjie is a brand under the collaboration between Huawei and Jianghuai Auto under the HarmonyOS Smart Mobility initiative, with Jianghuai Auto responsible for vehicle manufacturing.
This recent downturn follows a period of sharp gains in Jianghuai Auto’s stock price. From September 22 to 30, over six trading days, the stock rose by approximately 41.7%, fueled by rumors of potential collaborations between Jianghuai Auto, Huawei, and the multinational automotive group Stellantis.
In a statement released on September 30, Jianghuai Auto disclosed that while there were discussions and negotiations indicating intentions for cooperation with the aforementioned parties, no definitive agreement had been reached, and the nature and form of the collaboration remained uncertain, leading to significant uncertainties moving forward.
The company also revealed a net loss of approximately 749 million yuan attributable to shareholders of listed companies in the first half of this year, with a further 991 million yuan in net losses after deducting non-recurring gains or losses.
A commentary published on October 9 by Peninsula Web pointed out that while Jianghuai Auto had experienced significant previous gains, the company still faced performance pressures, and uncertainties persisted regarding the tripartite collaboration, suggesting that the entire decline could not be solely attributed to the testing video.
The controversy arose from a testing video released by the automotive information platform “Car King” on October 8. The video showed three Junjie V800 vehicles experiencing brake pedal bracket fractures during emergency braking tests from speeds of 100 kilometers per hour to a complete stop on the third, fourth, and second full braking attempts, all at the same location of breakage.
Junjie Auto referred to the test as “non-standard extreme test conditions” and stated that similar malfunctions had not occurred during actual user operation. However, “Car King” asserted that emergency braking at 100 kilometers per hour is a fundamental aspect of vehicle testing and not an extreme condition.
According to a report by Interface News on October 9, after reviewing the video, Chairman Yuan Yongbin of the automotive braking system company Bertrand expressed his belief that the test drivers exerted excessive lateral force on the pedal, leading to its “forcible” breakage, which he categorized as “abuse of test conditions.” Bertrand staff subsequently confirmed that they did not supply parts to Junjie nor manufacture brake pedals.
Qiu Jingcao, Deputy Secretary-General of the Automotive Advanced Power System Division of the China Society of Automotive Engineers, stated in an interview with First Financial that currently, there are no specific regulations restricting the amount of force a driver can apply on the brake pedal. However, under normal circumstances, a driver should not be able to directly break the brake pedal regardless of the situation, according to Qiu.