GAC Group scores 2-digit YoY growth in Q1-Q3 2023 revenue

Shanghai (Gasgoo)- In the first three quarters of 2023 (Q1-Q3 2023), GAC Group achieved consolidated gross revenue of 98.182 billion yuan, representing a 22.17% jump year-on-year, according to the group's latest quarterly financial results released on October 26.

The group said its Q3 net profit attributable to shareholders reached 1.545 billion yuan, sliding 33.18% over a year ago, but rising 8.1% from the previous quarter. For the Q1-Q3 period this year, GAC Group faced a 44.05% year-on-year slump in cumulative net profit, which stood at 4.511 billion yuan.

The group’s gross profit margin for the Jan.-Sept. period was 5.12%, up 0.58 percentage points over the year-ago period. In Q3, the gross profit margin reached 8.17%, showing a year-on-year increase of 3.53 percentage points.

For the first three quarters of this year, the Guangzhou-based auto group sold a total of 1,794,264 vehicles, representing a 1.69% year-on-year decrease.

Notably, the group's new energy vehicle (NEV) business demonstrated a robust performance in both monthly and year-to-date sales. In Sept. alone, its NEV sales surged 70.36% from a year earlier to 57,973 units, resulting in a Jan.-Sept. volume of 393,912 units, which zoomed up 92.27% from the year-ago period.

Of the NEVs sold through the Jan.-Sept. period, 350,986 units of sales were contributed by GAC AION, the group's NEV-dedicated subsidiary, reflecting a 92.51% soar year-on-year.

AION Y Plus; photo credit: GAC AION

Faced with nearly doubling sales growth, GAC AION is focusing on expanding its production capacity. On October 24, GAC Group announced its intention to restructure GAC Mitsubishi and GAC Mitsubishi Automobile Sales Company. After the restructuring is finalized, GAC Mitsubishi will transition into a wholly-owned subsidiary of GAC Group, and GAC AION will use GAC Mitsubishi’s facilities to expand production capacity, aiming for mass production by June 2024. Once completed, GAC AION's production capacity will reach 600,000 units per year, providing a solid foundation for achieving its strategic goal of 1 million units in production and sales by 2025.