FAW Car Co, a listed subsidy of FAW Group, reported an 88 percent fall in net profit last year to only 217 million yuan due to sluggish sales.

Based in Changchun, Jilin province, and publicly traded on the Shenzhen Stock Exchange, the company builds its wholly owned Besturn brand cars and three Mazda models under a contract with the Japanese carmaker.

FAW said fierce market competition and the expiration of government's stimulus policies affected sales and prices for Besturn last year. It also said that appreciation of the Japanese yen increased costs on imported components for Mazda cars.