Home / China News / News detail
SAIC Motor’s 2019 net profit forecasted to tumble 28.9% YoY
Monika From Gasgoo| January 14 , 2020

Shanghai (Gasgoo)- SAIC Motor's 2019 net profit attributable to shareholders of the public company is projected to reach roughly RMB25.6 billion, tumbling 28.9% compared with 2018, the automaker announced on January 13.

SAIC Motor 2019 net profit, SAIC Motor 2019 auto sales, China automotive news

Excluding the impact of certain no-recurring gains and losses, the annual net profit plunged 34% year on year to approximately RMB21.4 billion.
The sales decrease should be partially blamed for the profit downturn, according to SAIC’s announcement. Last year, the automaker saw its full-year auto sales slide 11.54% over the year-ago period to 6,237,950 units. Before gaining a growth in December, the company had been suffering year-on-year sales drop for 15 consecutive months.

The waning performance of joint ventures was the major reason leading to the overall decrease. In 2019, SAIC Volkswagen, SAIC-GM-Wuling and SAIC-GM were hit by 3.07%, 19.42% and 18.78% sales decline respectively.

SAIC Motor 2019 net profit, SAIC Motor 2019 auto sales, China automotive news

(Photo source: MG)

Nonetheless, it would be remiss not to mention the bright spots in SAIC's NEV and overseas performance. The latest sales report showed that the automaker's NEV annual sales hit a record high of over 180,000 units (+30%), of which more than 14,000 units were sold outside China. Additionally, it sold roughly 350,000 complete vehicles in foreign markets, a significant growth of 26.5% compared with 2018. Of that, the sales of MG-branded cars zoomed up 90% to 139,000 units.

Besides, other factors that should account for the profit drop include the intensified imbalance between supply and demand resulting from the transition from the China Ⅴ to the Ⅵ emission standard, and the NEV subsidy phase-out, said SAIC Motor.

Gasgoo not only offers timely news and profound insight about China auto industry, but also help with business connection and expansion for suppliers and purchasers via multiple channels and methods. Buyer service:buyer-support@gasgoo.comSeller Service:seller-support@gasgoo.com

All Rights Reserved. Do not reproduce, copy and use the editorial content without permission. Contact us: autonews@gasgoo.com