GAC Group expects a net loss of 4.06 to 4.57 billion yuan for H1 2026, contrasting with total sales of 773,100 units, up 2.35% year-over-year. NEVs account for over 60% of sales, while self-owned brands and exports both delivered strong growth. The sharp decline in joint venture sales remains the primary drag on overall profitability.
Key Figures: The Disconnect Between Volume and Profit
On July 11, 2026, GAC Group released its first-half earnings forecast, projecting a net loss of 4.06 billion to 4.57 billion yuan. This figure stands in sharp contrast to the group's overall sales growth — H1 cumulative sales reached 773,100 units, up 2.35% year-over-year.
The data reveals a notable divergence across segments:
- Self-owned brands delivered strong results with 346,000 units, up 35.69% YoY
- GAC Aion sold 181,600 units, surging 67.08% YoY
- Overseas exports hit 121,500 units, up 132% YoY
- NEV sales share surpassed 60% for the first time
Joint Ventures: The Profit "Bleeding Point"
Joint ventures are the core issue behind GAC's profit pressure. GAC Honda delivered only 68,300 units in H1, plummeting 55.82% YoY. GAC Toyota fared slightly better at 356,000 units, up just 3.29%.
Three primary factors contributed to the overall loss:
- Intensifying competition in China's passenger car market, with price wars compressing per-unit margins
- Sharp contraction in joint venture sales, weakening economies of scale
- Adverse foreign exchange fluctuations affecting export settlement gains
| Brand | H1 Sales (units) | YoY Change | Share |
|---|---|---|---|
| GAC Toyota | 356,000 | +3.29% | 46.1% |
| GAC Aion | 181,600 | +67.08% | 23.5% |
| GAC Honda | 68,300 | -55.82% | 8.8% |
| Other Self-owned | 167,200 | — | 21.6% |
NEV Transition Accelerates as Self-owned Brands Take the Lead
With joint ventures underperforming, GAC's self-owned brands are becoming the new growth engine. NEVs accounting for over 60% of sales signals a profound structural shift in GAC's product portfolio.
GAC Aion, the NEV spearhead, shows particularly strong momentum. Through platforms like EX1000.COM, overseas buyers can access detailed specs and market performance data for GAC's NEV lineup. The Aion brand is gradually building recognition in Central Asia and Russia.
Export Boom: Opportunities and Challenges
The overseas market was GAC's brightest spot in H1:
- Total exports reached 121, 500 units, up 132% YoY
- Central Asia, the Middle East, and Southeast Asia are the key growth markets
- Demand for cost-effective NEVs continues to rise in Russia and neighboring markets
However, FX volatility is pressuring export profitability. GAC explicitly cited exchange rate fluctuations as a material factor affecting H1 results.
Market Reaction and Outlook
Capital markets reacted with measured restraint to GAC's earnings warning. Analysts note that GAC's predicament is not unique — it reflects the typical challenges traditional automakers face during the NEV transition.
Looking ahead to H2, GAC needs to focus on:
- Accelerating NEV product expansion to capture more segment share
- Optimizing joint venture operational efficiency to contain losses
- Deepening overseas localization to hedge FX exposure risks
| Dimension | Current Status | H2 Outlook |
|---|---|---|
| NEV Share | >60% | Target 65%+ |
| Export Growth | +132% | Maintain high double-digit growth |
| Joint Ventures | Sales under pressure | Stabilize or modest recovery |
