Sales Up, Exports Double, Yet GAC Predicts Over 4 Billion Yuan Loss?

GAC Group released a half-year performance report for 2026. The numbers are quite shocking — net loss for the first half estimated at 4.06 billion to 4.57 billion yuan. The net profit after deducting non-recurring gains and losses was even worse, with a loss of 4.8 billion to 5.6 billion yuan. More than 4 billion yuan, losing over 20 million yuan per day, it doesn't look very ideal.

But look at another set of numbers — GAC sold 773,100 vehicles in the first half, a year-on-year increase of 2.35%. New energy vehicle sales accounted for over 60%. Independent brands sold 346,000 vehicles, a surge of 35.69%. AION was even more fierce, 181,600 vehicles, a year-on-year increase of 67.08%. Overseas exports 121,500 vehicles, a year-on-year increase of 132%, the semi-annual export scale is already close to last year's full year level. Sales are up, new energy transformation is accelerating, and exports are doubling — but the books show an even bigger loss. How is this account calculated?

 GAC Group

What does the official say?

GAC's announcement was very straightforward, three reasons:

First, domestic market competition intensified, independent brands continued to increase sales investment, plus changes in product sales structure, and rising upstream raw material costs, leading to a decline in independent brand profits.

Second, joint venture brands are facing operational pressure. Specifically, terminal sales decline, continued increase in sales investment, rising raw materials, etc., are all important factors, and the company's investment income decreased year-on-year.

Reason for Loss 

Third, exchange rate fluctuations caused exchange losses, adding another blow. Obviously, GAC Group gave a relatively clear interpretation of the reasons for the loss in the first half.

To translate, it might be that independent brand profits are not as high as before, joint venture brands are under greater pressure, and exchange rates also caused a certain loss to profits.

Combining all the above factors, GAC Group is expected to incur a loss in the first half of 2026. Moreover, the loss amount is expected to reach 4.06 billion to 4.57 billion yuan, which is quite high.

However, Car Universe World believes that if you only focus on the word "loss", you might miss the real story.

Loss Forecast Announcement 

Joint Ventures: One "Under Pressure", One "Steady"

GAC Group official data shows, GAC Honda sold 68,300 vehicles in the first half, a year-on-year decline of 55.82%, almost 60% down. June single month 14,000 vehicles, although it increased more than 50% month-on-month, it fell 53% year-on-year.

The joint venture giant that used to sell 700,000 annually, now the average monthly sales of the first half is over 10,000 units. Accord, Fit, Vezel, Integra these classic models, monthly sales generally not as high as before.

Obviously, from the sales perspective, in the first half of 2026, GAC Honda still declined significantly, reaching over 50%, bearing a certain amount of pressure.

Production and Sales Express 

But the performance of GAC Toyota is different, the overall performance is still steady. Moreover, under the situation that domestic car market joint venture brands are under pressure overall, its sales volume is stable and rising.

GAC Group official data shows, in the first half of 2025 GAC Toyota sold 356,000 vehicles, monthly average sales close to 60,000 units. Year-on-year increase 3.29%. March, April, May for three consecutive months topped the sales list of joint venture car companies. July 2nd, GAC Toyota also welcomed the 10 millionth mass-produced vehicle rolling off the assembly line, joining the "million-unit level large factory".

Moreover, Car Universe World found, supporting GAC Toyota is not low-price volume-selling cars, but the Camry, Highlander, Sienna three major flagships continuing to exert effort, smart electric hybrid double engine vehicle proportion reached 54% . Boxi brand sold 52,000 units in the first half, Boxi 3X consecutive 10 months holding joint venture pure electric sales champion.

One continues to bear pressure, one steady, this joint venture card, GAC has not finished playing yet.

 Boxi 7

Independent and Overseas Markets, The Real Highlights

Car Universe World believes, if there is anything eye-catching in GAC's first-half performance report, it must be the overseas market and the surge in independent sales.

Official data shows, first half of 2026, GAC Trumpchi cumulative sales 164,000 units. Compared to the same period last year, sales increased by 12.36%.

AION rose even harder. Official data shows, first half of 2026, GAC AION cumulative sales 181,000 units. Compared to the same period last year, sales increased by 67.08%.

In terms of overseas markets, first half independent brand exports 121,500 vehicles, year-on-year growth 132%, semi-annual export scale already close to last year's full year. Americas, Asia-Pacific, Middle East, Africa, Europe five major regions simultaneously achieved high-speed growth.

 Trumpchi E8

Mexican market, AION ES and AION UT both entered the top ten in new energy BEV sales. Bolivia, GAC brand consecutive months holding China brand passenger car sales champion. Singapore, Thailand, Malaysia, Indonesia — GAC's overseas map is blossoming in multiple points.

GAC's overseas target set at the beginning of the year was 250,000 vehicles for the full year, striving for 300,000 vehicles. First half completed 121,500 vehicles, completion rate close to half. When the domestic market is too hard to compete, overseas became GAC's strongest growth curve.

 AION N60

The Account of Transformation, Cannot Look Only at the Present

The "Panyu Action" launched in 2025 is being implemented step by step.

Headquarters moved to Panyu, closer to the production frontline. Feng Xingya said an interesting sentence — "We moved the office to the place closest to the gunfire, so that those who hear the gunfire can call for it." Business Unit (BU) restructuring finished, Hyper AION BU formed first, January 2026 Trumpchi BU also established. GAC independent brands have formed a new operating architecture centered on BU.

Cooperation with Huawei also produced results. Jointly created high-end brand "Qijing" first model GT7, launched in Hangzhou on June 26th. Price 209,900 to 329,900 yuan, launched 24 hours big deposit orders broke 5200 units, Post-90s, Post-00s user proportion over 60%. Pre-sale 5 hours orders broke 10,000. 90 cities nationwide 300 stores gradually launched.

Qijing GT7 is equipped with Huawei Qiankun Intelligent Driving ADS 5. This is GAC's first car with deep cooperation with Huawei, and also a hard battle facing the market after the "Panyu Action".

These moves are all "money" in the short term — R&D needs money, channels need money, brand building needs money. But looking at a longer time dimension, these investments are storing power for the next stage. GAC positioned 2026 as the "Internal Renovation" critical stage, likely this is the meaning — first solidify the foundation, then talk about building high-rise buildings.

 AION N60 

Conclusion of This Article:

GAC's full-year target set at the beginning of the year was 2 million vehicles, first half completion rate less than 40%. Second half needs to sell nearly 1.23 million vehicles, monthly average over 200,000 vehicles. Under the current situation of joint venture pressure and intensifying new energy competition, how hard this task is, no need to say more.

But Car Universe World believes, the cards GAC holds are not finished playing yet. Joint ventures have GAC Toyota stabilizing, independent brands have AION and Trumpchi rushing, overseas releasing volume, Qijing just started.

How to play these cards, when to play them, perhaps will become an important factor for GAC Group when to walk out of the pain of transformation. These, we still let time give an answer.

Transformation is always bitter first then sweet, and never looking only at the present. What do you think? Let's chat in the comments.

Statement: This article involves relevant events, originating from brand official or authoritative media messages, for reference only, specific based on official information. If there are information, data discrepancies caused by typos, based on official information. Hope everyone looks rationally, do not believe rumors, do not spread rumors.

Article Statement:

This article is original writing of Car Universe World, reviewed by Ling Qing/Liu Shuai, Total Issue 14186, some pictures from the internet, marked source data and related materials are all citations. Car Universe World original copyright owned, infringement will be investigated.