Chinese automaker JAC Motors is facing a tough reality. The company just posted a staggering 1.784 billion yuan (234.74 million USD) net loss for 2024, a complete reversal from the previous year. With sales declining and its joint venture with Volkswagen bleeding cash, JAC is betting the farm on a wildly ambitious project: an ultra-luxury sedan called the Maextro S800, co-developed with Huawei and priced over ten times its current average vehicle cost. It’s a high-risk, high-reward play that could either save the company or seal its fate.
A Financial Nosedive
The numbers don’t lie. JAC’s revenue dropped 6.28% in 2024, while its net profit plunged by an eye-watering 1277.59%. This wasn’t just a bad year; it was a record loss for the company since going public. Even after selling off assets and receiving government subsidies, the core business couldn’t turn a profit, signaling deep-seated issues.
Sales figures tell a similar story. Total vehicle sales fell by 7.42%, but the passenger car division was hit particularly hard, with a 16.59% decline. The start of 2025 hasn’t brought any relief, with sales continuing to slide for five consecutive months. This downturn has even led to a smaller workforce, with over 1,600 employees cut in the last year, mostly from production.
The Volkswagen Venture Sours
A huge chunk of the financial damage comes from JAC’s joint venture with Volkswagen. The partnership, Volkswagen Anhui, chalked up an investment loss of 1.35 billion yuan (186.3 million USD), a massive increase from its loss in 2023.
Hopes were high when the venture launched its first model, the ID.UNYX, an electric coupe SUV sporting a premium “golden logo.” But it failed to connect with buyers. The model was seen as too small and under-equipped for its price, suffered from low brand recognition, and was held back by a tiny sales network. Monthly sales reportedly hovered around just one hundred units. A desperate price cut of 40,000 yuan (5,500 USD) and a slight facelift haven’t been enough to spark a turnaround, especially with only 60 dealerships across 31 cities by the end of 2024.
Is a Huawei-Backed Super Sedan the Answer?
With its Volkswagen partnership struggling, JAC is pinning its hopes on a very different collaboration. The company is deepening its partnership with Huawei to launch the high-end luxury brand, Maextro. Their first creation, the Maextro S800, is a statement piece.
This ultra-luxury S800 sedan is targeting a pre-sale price between 1 million and 1.5 million yuan (131,600 to $197,400 USD). It’s a shocking figure, considering the average selling price of a JAC passenger car in 2024 was just 73,000 yuan (10,000 USD). Can a brand known for budget-friendly cars convince buyers to spend over a million yuan?
JAC is all in. It has invested nearly 4 billion yuan into a “super factory” for the Maextro and is raising another 4.9 billion yuan to develop the high-end electric platform it will sit on. This platform is planned for a whole family of Maextro vehicles, including SUVs and MPVs.
The move is a daring leap into a segment of the Chinese auto market that is notoriously difficult to crack. While Huawei’s tech provides a powerful boost in credibility and capability, JAC’s own track record in the passenger vehicle space is poor.
Despite the grim 2024 results, JAC projects a 6.67% sales increase and a 9% revenue bump for 2025. Whether this is optimism or delusion depends entirely on two things: a miraculous turnaround for the VW ID.UNYX, and a successful launch for the Maextro S800 in May. It’s a make-or-break year, and the entire industry will be watching to see if this audacious gamble pays off.
