SAIC Motor Forecasts Sharp Decline in 2024 Profit
SAIC Motor recently announced its profit forecast for 2024, predicting a significant decrease in net profit compared to the previous year. The company expects a net profit attributable to shareholders of between 1.5 billion yuan and 1.9 billion yuan, representing a steep decline of 87% to 90%. Excluding certain non-recurring gains and losses, SAIC Motor could potentially post a net loss of 4.1 billion yuan to 6 billion yuan, marking a plunge of 141% to 160% compared to 2023.
The decline in sales revenue and gross profit is attributed to a contracting oil-fueled vehicle market and escalating price competition. In its core automotive business, SAIC Motor reported cumulative wholesale sales of 4.013 million vehicles and terminal deliveries totaling 4.639 million vehicles for 2024.
The company’s self-owned brands, including IM Motors, MG, Maxus, Wuling, and Baojun, achieved wholesale sales of 2.408 million vehicles, showing a 5% increase from the previous year. The group’s new energy vehicle (NEV) wholesale sales reached 1.234 million units, up 9.9% year-on-year. The premium brand IM Motors saw a significant 71.2% increase in sales, selling 66,000 vehicles. In the overseas market, SAIC Motor delivered 1.082 million vehicles, marking a 2.6% year-on-year increase.
In the core intelligent electric technology sector, SAIC Motor invested nearly 150 billion yuan in research and development over the past decade. The company has introduced various innovative platforms and solutions, including pure electric, hybrid, and hydrogen vehicle platforms, advanced batteries, electric drive systems, super-hybrid systems, and intelligent vehicle full-stack solutions.
SAIC Motor also launched the “Seven Technological Pillars 2.0” initiative, featuring advancements such as solid-state batteries, digital smart chassis, advanced intelligent driving, and Rubik’s cube batteries. The company has engaged in significant collaborations, including partnerships with Audi and Volkswagen to develop high-end smart electric vehicles and new vehicle models with advanced technologies.
Overall, SAIC Motor remains committed to innovation and technology advancement in the automotive industry, despite the projected decline in profit for 2024. It continues to focus on sustainable growth and strategic partnerships to drive future success in the market.
