BAIC Motor posts massive loss amid fierce competition
Automaker BAIC Motor Corp. Ltd. (1958.HK) on Tuesday warned it expects to report a loss of 1.55 billion yuan ($229 million) to 1.65 billion yuan for the first half of 2026, reversing a profit of 360 million yuan a year earlier.
The company attributed the sharp turnaround to fierce competition in China’s auto market, which caused sales to fall short of expectations. Surging raw material and marketing costs further undermined the company, dragging it into the red. Confronted with those headwinds, BAIC said it is navigating industry trends and advancing its new energy transition strategy.
It said its Beijing Benz subsidiary has accelerated the rollout of new energy vehicle (NEV) models. The unit has also boosted its localization efforts to slash costs, boost efficiency and enhance the competitiveness of its offerings in the luxury car market.
Shares of BAIC Motor opened up 2.3% at HK$0.88 on Wednesday. The stock is down over 60% from its 52-week high.
By Lau Chi Hang
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