JAC Motors Shares Plunge After Brake Pedal Bracket Fractures in Emergency Braking Tests
TREE NEWS reports: JAC Motors (江淮汽车) saw its stock hit the daily limit-down for a second consecutive session on October 9, with sell orders stacking up to 110,000 lots, after a widely circulated brake test video showed three Zunjie V800 luxury MPVs suffering identical brake pedal bracket fractures during 100 km/h emergency braking tests. The vehicle, jointly developed under Huawei’s HIMA (HarmonyOS Intelligent Mobility Alliance) ecosystem, had been a flagship product for JAC’s premium push.
The testing video, released on October 8, showed three separate V800 units—two rented and one newly purchased, produced in August and September—all experiencing bracket failures at the same location and with nearly identical fracture patterns. The first vehicle failed on the third full-force braking attempt, the second on the fourth, and the third on the second, with a peak pedal force of 1,612 Newtons. A viral screenshot claiming a 4,589N force was later clarified as a camera artifact caused by frame-rate mismatch between high-speed cameras and test equipment displays.
Official Response and Free Upgrade Offer
Zunjie Motors issued an official statement late on October 8, asserting that its braking system was developed and validated to standards exceeding both national (GB 21670-2025 / GB 7258-2026) and industry (QC/T 788-2018) requirements, and that no such bracket base fractures had occurred in real-world user scenarios since first deliveries. Nevertheless, the company announced it would optimize the component design and offer free upgrades to all delivered vehicles—a tacit acknowledgment of a potential design vulnerability.
The controversy comes at a sensitive time for JAC. The stock had surged over 42% between September 11 and 30, prompting the company to disclose abnormal trading volatility. The V800 and V680 MPVs, launched on August 5 with starting prices of RMB 766,000, 866,000, and 1.016 million for the V800 trims, had accumulated over 10,000 pre-orders in 23 days and more than 3,500 firm orders within 24 hours of launch.
Market Implications
The sell-off reflects investor anxiety over potential reputational damage to Huawei’s HIMA brand—a key growth driver for several Chinese automakers—and the financial cost of a mass retrofit campaign. While the free upgrade program may cost tens of millions of RMB, the greater risk lies in consumer confidence. China’s MPV segment is fiercely competitive, and safety concerns can rapidly erode order books.
For broader markets, the incident highlights the vulnerability of Chinese EV and smart-vehicle supply chains to quality-control scandals. It also underscores the growing scrutiny on advanced driver-assistance and braking systems as vehicles become more software-defined. Bond investors may watch whether JAC’s credit outlook is affected, though the company’s state-owned backing likely limits near-term default risk.
In the crypto and commodity space, the news has minimal direct impact, though it adds to a broader narrative of industrial quality risks in China that could influence copper and aluminum demand forecasts if production cuts or recalls escalate.
Key Takeaways for Investors
- Short-term volatility likely: JAC shares may face continued pressure until the root cause is identified and the retrofit program is quantified.
- Watch HIMA partners: Other automakers in Huawei’s alliance (e.g., Seres, Chery) could see sympathy selling if the issue is perceived as systemic.
- Regulatory risk: Beijing may tighten safety testing requirements for smart EVs, raising compliance costs across the sector.
- Damage control execution: The speed and transparency of Zunjie’s response will determine whether this remains a one-off or becomes a brand crisis.
Investors should monitor official follow-up statements, any regulatory probes, and the company’s next sales figures for signs of demand erosion.
