GAC Projects 2026 H1 Net Loss of 4.06 Billion to 4.57 Billion Yuan

Gasgoo Munich- GAC Group released its earnings forecast for the first half of 2026, and the pressure is mounting. The automaker expects a net loss attributable to shareholders of between 4.06 billion yuan and 4.57 billion yuan. Excluding non-recurring items, losses are projected to widen further, ranging from 4.8 billion yuan to 5.6 billion yuan—marking a significant expansion compared with the same period last year.

By comparison, the company posted a net loss of 2.538 billion yuan for the first half of 2025, with a non-recurring loss of 2.945 billion yuan. The shift in numbers underscores a deepening operating deficit for the first half of 2026, as profitability pressures intensify.

Image Source: GAC Group

Notably, GAC managed a slight uptick in overall sales and gross margins during the reporting period. Overseas deliveries surged, contributing to a steady expansion of the company's overall operational scale.

GAC offered a clear explanation for the profit slide and widening losses. First, domestic competition remains fierce. To defend market share, the company’s proprietary brands have ramped up spending on sales incentives. Combined with adjustments to the product mix and rising raw material costs, this drove a year-on-year decline in profitability for those brands.

Second, joint ventures are feeling the squeeze. With retail volumes slipping alongside rising sales costs and expenses, investment income fell compared with the previous year. On top of that, foreign exchange volatility during the period resulted in currency losses, further squeezing the company's profit margins.

The broader industry context is clear: price competition has become the new normal in China’s passenger car market. Automakers are grappling with a common dilemma—rising revenue without rising profits—as sales growth diverges from earnings recovery. GAC’s widening losses serve as a microcosm of these sector-wide headwinds, where heavy spending on proprietary brands, contracting returns from joint ventures, and external cost pressures collide.