Guangzhou Automobile Group Co., Ltd. (GAC Group) saw a significant decline in operating income, net profit attributable to shareholders of the listed company, and gross profit margin in the first three quarters of this year. The net profit attributable to shareholders of the listed company plummeted by 3691.33% compared to the same period last year. The state-owned car enterprise controlled by the Guangzhou government faced substantial losses for the first time last year, reflecting the severe challenges it is confronting in the car market.
On the evening of October 24, GAC Group released its third-quarter report.
According to the report, in the first three quarters of this year, GAC Group’s revenue amounted to 66.272 billion yuan, a 10.49% decrease compared to the same period last year. The net profit attributable to shareholders of the listed company incurred a loss of 4.312 billion yuan, representing a decline of 3691.33%, with a basic earnings per share of -0.42 yuan. The net loss in the first three quarters is equivalent to the full-year net loss in 2024 (4.35 billion yuan).
In the third quarter, the operating income was 24.106 billion yuan, a 14.63% decrease compared to the same period last year. The net loss attributable to shareholders of the listed company was 1.774 billion yuan, with a basic earnings per share of -0.17 yuan.
GAC Group attributed the performance change mainly to the fierce competition in the domestic car industry, rapid upgrading of demand structure leading to a decline in car sales and profits, as well as the decrease in overall profit due to the HK-listed valuation premium of Qi ride-sharing service in the same period last year.
Industry analysts believe that the price war in the new energy vehicle market has exerted immense pressure on traditional car manufacturers, impacting GAC Group’s market performance in both its own brands and joint venture brands.
According to GAC Group’s production and sales bulletin, the company’s cumulative sales volume in the first three quarters of this year was 1,183,653 vehicles, an 11.34% year-on-year decrease. GAC Honda saw a 27.58% decline, GAC Toyota had a 4.89% growth, GAC Trumpchi suffered a 15.84% drop, and GAC Aion experienced a 19.99% decline compared to the same period last year.
On October 20, Feng Xingya, the Chairman and General Manager of GAC Group, reiterated in an interview on CCTV’s program “Dialogue” that “GAC has indeed entered a ‘wartime state’.” Three months ago, during the 2025 China Automobile Forum, Feng Xingya stated, “The current automotive industry reform has entered deep waters, and GAC Group has fully entered a ‘wartime state’.”
GAC Group’s annual report for 2024 revealed significant decreases in total operating income, net profit attributable to shareholders of the listed company, and car sales volume. The net profit suffered a loss of 4.35 billion yuan, a sharp decline of 221.8% year-on-year, marking the first loss for GAC Group in 20 years.