Shanghai(ZXZC)-On Oct. 10, JAC Auto released performance forecast for the previous three quarters of 2017, showing that the net profit attributable to the shareholders in the previous nine months declined 80% year-on-year to an estimated RMB 163.5 million on the basis of RMB 817.5 million. JAC Auto stated that the decreasing subsidies for NEVs and declining passenger vehicle sales are the main reasons for the bad performance.

Data showed that JAC passenger vehicles had a total sales volume of 161,400 units in the previous nine months, decreasing 40% year-on-year on the basis of 264,800 units. Its monthly sales volume was cut in half to 19,000 units in September, the steepest monthly drop in the year.

The mainstream SUV models sold 90,454 units this year with a year-on-year decline of 54.6%, which is the primary cause for passenger vehicles' sales decline. MPV and car models show robust growths of 1.3% and 27.37% respectively in the year.

The slump in passenger vehicle sales will inevitably impact JAC Auto's profit and create obstacles in achieving its annual sales target. It's known that only 40% of JAC passenger vehicles' annual sales target of 400,000 units has been achieved till now.

Besides, it should be noticed that JAC BEV sales surged 81.44% year-on-year to 3,021 units on the basis of 1,665 units in September, and the number also reached 17,495 units in the previous nine months with 27.64% year-on-year growth.

However, influenced by decreasing national and local subsidies for NEVs, the growing sales of NEVs have not brought much growth in revenues. Announcement shows that JAC Auto received financial subsidies of RMB 124 million in the first half of year, decreasing greatly when compared with the number of RMB 670 million in 2016.