Jac suffers record losses in China, and that’s why

The Chinese car manufacturer from the province of Ankhoy unveiled financial indicators for 2024, and, judging by the numbers, his affairs are not coming out of his hands. Car sales were sank by more than 16 percent, and revenue fell by 6.28 percent, and record losses – 1.784 billion yuan (equivalent to 234.74 million USA). In China, Jac has a joint production with Volkswagen, and in Russia the company acts as a partner of Moskvich, Sollers and KamAZ.

Carnewschina writes that the low financial results of Jac have several reasons, and one of the main ones is unsuccessful investments. So, for example, a joint venture with Volkswagen brought Jac losses of 1.3 billion yuan. Currently, the joint venture, which has become the first joint plant for the production of cars in new energy sources in China, is producing only one model, ID.unyx, monthly sales of which are about a hundred copies.

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Another reason was the huge costs of developing a new model, a luxurious Maextro S800 sedan, which should enter the Chinese market in May of this year with an initial price of about 1 million yuan (11.7 million rubles). The creation of an electric platform for Maextro cost 5.875 billion yuan, and another 3.981 billion Jac invested in its production. In order for the costs to pay off, the Maextro S800 must successfully debut in the PRC, and due to strong competition from other brands, this is a great risk.

Chinese experts interviewed by the publication believe that in the current situation, the main business of the JAC is unlikely to be able to make a profit.

The JAC brand is also officially represented in Russia: the model line consists of the J7 liftback, JS3 and JS6 crossovers, as well as three pickups: T8, T8 Pro and T9. In addition, modern “Muscovites” were built on the basis of JAC cars: “Moskvich 3” is JAC JS4, “Moskvich 6” is a Jac Sehol A5 Plus, an electric “Moskvich 3e” is a JAC E-JS4, and the Moskvich 8 preparing to launch is JAC X8 Plus. Sollers also produces the JAC pouring and adapted cars under its own brand, these are Sollers ST6 (JAC T6) and T8 (JAC T8), as well as commercial Sollers Argo (JAC N25/N3) and Atlant (JAC Sunray).

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