BAIC profit rises 8% in 2015 on JV's strong Mercedes sales
BAIC Motor Co.'s net income increased 8.2 percent to 6.3 billion yuan ($969 million) last year as the company's partnership with Daimler AG registered big sales gains.
The Hong Kong-listed company attributed the growth in profits to Beijing Benz Automotive Co., its joint venture with the German luxury car maker.
Beijing Benz produces the Mercedes C-Class and E-Class sedans as well as the GLA and GLC crossovers in China. The partnership's sales surged 72 percent last year to 250,200 vehicles.
The joint venture also purchased more components produced in China, driving down production costs. As a result, Beijing Benz' operating profit jumped 135 percent to 7.8 billion yuan, according to BAIC.
While its partnership with Daimler prospered, BAIC Motor's joint venture with Korean automaker Hyundai Motor Co. struggled. Last year, that partnership delivered 1.1 million vehicles, dipping 5.1 percent from a year earlier.
Due to declining sales and price discounts, BAIC's return on the Hyundai venture dropped nearly 27 percent to 4.3 billion yuan.
The BAIC brand also suffered big losses despite strong vehicle sales. Last year, the unit's deliveries rose 8.9 percent to 337,100 vehicles, but its operating loss jumped nearly 76 percent to 3.3 billion yuan.
The BAIC unit's disappointing performance was a result of fast-rising marketing outlays, the company said.
Beijing Benz produces the Mercedes C-Class and E-Class sedans as well as the GLA and GLC crossovers in China. The partnership's sales surged 72 percent last year to 250,200 vehicles.
The joint venture also purchased more components produced in China, driving down production costs. As a result, Beijing Benz' operating profit jumped 135 percent to 7.8 billion yuan, according to BAIC.
While its partnership with Daimler prospered, BAIC Motor's joint venture with Korean automaker Hyundai Motor Co. struggled. Last year, that partnership delivered 1.1 million vehicles, dipping 5.1 percent from a year earlier.
Due to declining sales and price discounts, BAIC's return on the Hyundai venture dropped nearly 27 percent to 4.3 billion yuan.
The BAIC brand also suffered big losses despite strong vehicle sales. Last year, the unit's deliveries rose 8.9 percent to 337,100 vehicles, but its operating loss jumped nearly 76 percent to 3.3 billion yuan.
The BAIC unit's disappointing performance was a result of fast-rising marketing outlays, the company said.
