Great Wall Motor Q3 profit nearly halved amid China SUV sales cooling

Shanghai (Gasgoo)- Great Wall Motor reported revenue of RMB 66.65 billion for the first three quarters with an increase of 5 percent year on year while the net profit attributable to the shareholders of the listed company jumps 36.36% to RMB 3.927 billion during the period.

However, the automaker’s revenue in the third quarter fell 19% from a year ago to RMB 17.966 billion. Its net profit attributable to the shareholders of the listed company was nearly halved to RMB 231 million compared with the same period last year.

Official price reduction on some models and sales promotion may contribute to the profit drop in the third quarter. What’s more, WEY, the automaker’s premium brand, needs much more money for greater publicity.

Vehicle sales decline exerted great influence on its profits. In September, Great Wall sold 86,700 new vehicles, down 15% year on year. For the first nine months, the company’s vehicle sales totaled 676,700, only, 58.33% of its 1.16-million annual sales target. In consequence, Great Wall saw its profit decline.

Another factor would be the sales cooling of the country’s SUV segment, which Great Wall relies heavily on. In September, the sales of the SUV market declined 10% year on year. The Haval H6 of Great Wall Motor, once the most popular SUV model in China, saw sales drop by 31.8% and 21.4% respectively in August and September.