Cost Control Optimization of JAC Motors from a Value Chain Perspective: An Analysis based on 2021–2024 Financial Data

Abstract

Under China’s 15th Five-Year Plan, traditional car manufacturers like JAC Motors are under growing pressure to improve their value chain management and keep up with industrial changes. This paper uses JAC Motors’ financial data from 2021 to 2024 to examine its cost control in four areas: procurement, production, research and development (R&D), and sales. The analysis finds four key problems: (1) high average procurement costs caused by a volume-based bargaining strategy, (2) poor coordination between production automation and quality inspection, (3) low efficiency of R&D spending, and (4) a mismatch between sales spending and actual market needs. These issues prevent the company from achieving the best combination of cost control and value chain performance. To solve these problems, this paper suggests four strategies: adding risk management tools to improve procurement, using data-driven methods to manage all production factors, working with other companies on R&D in weak areas after better market research, and making sales spending more effective by following market trends. These measures can help the company use its funds more wisely, cut costs, and support its shift toward new energy vehicles.