JAC suffers sales slump for both NEVs and fuel-powered vehicles

Shanghai (Gasgoo)- During the past eleven months in 2017, JAC delivered 586,000 vehicles with only 26,000 NEVs included, hinting that JAC still is a typical traditional fuel-powered carmaker. At the same time, JAC also saw sales slump of its traditional fuel-powered vehicles, dropping 21% year on year during the past eleven months in 2017.

The sales slump directly impacted the company's financial results. In the past three quarters, JAC suffered year-on-year net profit slump of 73% and a total asset drop of 8%. Its net capital outflow reached RMB 5.1 billion. These bad performances made JAC was considered unpromising in capital market.

Though JAC had cooperated with NIO, China's well-known electric vehicle startup, to manufacture the NIO ES8, it was still unable to see share price increase. The company underwent continuous share price drop since October, 2017.

JAC explained that the cooperation with NIO will be a new cooperation mode for traditional carmakers and Internet NEV startups. By partnering with NIO, JAC will be able to learn from electric vehicle startups.

JAC not only cooperates with NIO, but also plans to release high-end electric vehicle brand, signifying that JAC attaches great importance to NEV segment. Currently, JAC will focus on the development of NEVs and connected vehicles.