Shanghai (ZXZC)- Anhui Jianghuai Automobile Group Corp., Ltd. (JAC) predicted its 2017 net profit attributable to shareholders will plunge around 58% year on year, decreasing 677 million based on its 2016 net profit of RMB 1.162 billion.

JAC attributed the sharp net profit decline to the slumping sales of passenger vehicles, falloff of new energy vehicles' subsidies as well as the rise in the raw material prices.

Last year, JAC sold a total of 28,200 new energy vehicles (NEV), jumping 54% from a year earlier. However, affected by the phasing-out NEV subsidies policy, the income from NEV subsidies only reached RMB 1.556 billion, dropping 6.6% from the previous year.

Besides, the automaker only delivered 121,300 units of SUVs last year, nearly 154,200 units less than its 2016 SUV sales. Influenced by the sharp decline in SUV sales, JAC's passenger vehicles' annual sales plunged 39.5% year on year to 222,200 units in 2017.