GAC Group posts YoY growth in Q1 2024 gross margin

Shanghai (Gasgoo)- In the first quarter of 2024, GAC Group recorded quarterly revenues of approximately 21.346 billion yuan, which slid 19.12% over a year ago. Meanwhile, its Q1 net profit attributable to the shareholders reached about 1.22 billion yuan, shrinking 20.65% from the previous year. 

At the same time, the operating losses of major wholly-owned subsidiaries including GAC Trumpchi and GAC AION narrowed down by 23.9% compared to the same period last year.

In Q1 2024, due to reduced inventory, improved operational efficiency, and a decrease in the price of LFP batteries, GAC Group witnessed a significant increase in its overall gross profit, which surged 85.5% over a year earlier to 1.131 billion yuan , with its gross margin climbing 2.95 percentage points to year on year 5.24%.

In Q1 2024, GAC Group achieved production and sales of 403,000 and 410,000 vehicles, respectively, with self-owned brands' production and sales reaching 152,000 and 134,000 vehicles, respectively. Among them, GAC's Trumpchi achieved retail sales of 78,494 vehicles, a year-on-year increase of 12.3%, while GAC AION achieved retail sales of 67,510 vehicles, a year-on-year growth of 4.9%.

GAC Group is working on building a multi-layered mobility service ecosystem where its subsidiary ONTIME has launched commercial L4 Robotaxi operations, Andi technology Co., Ltd. (the joint venture with DiDi) plans to launch its first commercial L4 autonomous car model in 2025, and Miraco Motor intends to put its first L4 Robobus into volume production by the end of this year.

GAC Group said its will actively seize the opportunity for overseas expansion in 2024, continuing to strengthen its efforts in overseas market development while actively promoting localized production. The automaker has added multiple new sales outlets in American countries such as Panama, Chile, and the Dominican Republic, and participated in the Bolivia Expo Auto, making a comprehensive entry into the American market.

Through international cooperation, GAC Group is accelerating the establishment of overseas factories. In Q1 2024, GAC INTERNATIONAL signed a cooperation agreement with WTC Automotif (M) Sdn Bhd ("WTCA") of Malaysia to promote the first overseas CKD (Completely Knocked Down) assembly project, planning to commence production by the end of April this year. Meanwhile, GAC AION formed a strategic cooperation with the Indomobil Group, officially entering the Indonesian market. Besides, GAC AION's factory in Thailand is set to be completed in July this year.

In 2024, GAC Group will work hard on on building globally popular models, accelerating localized production, and striving to develop key markets such as Saudi Arabia, Russia, and Mexico. Moreover, roughly 200 new overseas outlets will be added this year, aiming to achieve an annual export sales target of over 150,000 vehicles.