GAC first-half profits surge on strong sales growth
Guangzhou Automobile Group Co. says its net profit for the first half of the year approached 6.2 billion yuan ($939 million), a jump of 55 percent from the same period last year.
In the first six months, GAC and its partnerships with Toyota Motor Corp., Honda Motor Co., Mitsubishi Motors Corp. and Fiat Chrysler Automobiles, delivered 962,709 vehicles, up 32 percent.
Leading the uptick was GAC’s own passenger vehicle unit and its joint venture with Fiat Chrysler.
In the first six month, sales of GAC’s Trumpchi brand increased 57 percent to 250,878 vehicles on strong demand for crossovers and SUVs.
Deliveries at GAC’s partnership with FCA soared 77 percent to 108,397 vehicles on healthy sales of three locally produced Jeeps: the Cherokee, Renegade and Compass.
In the first half, GAC’s revenue rose 32 percent 162.5 billion yuan.
A profitable sales mix of crossovers helped GAC’s own car unit and its joint ventures post an average gross margin of 21.6 percent during the 6-month period, up from 20.9 percent a year earlier.
GAC, based in the south China city of Guangzhou, is listed on the Shanghai and Hong Kong exchanges.