(Yicai Global) June 5 -- Chinese carmaker Beiqi Foton Motor plans to sell 30 percent of an axle-making joint venture it runs in a bid to ease the financial pressure caused by the shrinkage of the world’s largest auto market.

The Beijing-based firm is offering all of the shares it owns in Anhui Ankai Futian Shuguang Axle on the China Beijing Equity Exchange, it said in a statement. It has not finalized a price but hopes to pick up CNY36.5 million (USD5.1 million) for the stake in the loss-making unit.

Shares in Foton [SHA:600166] slumped on the news, falling 5.47 percent to CNY1.90 (27 US cents) as of 2 p.m.

Foton, part of Beijing Automotive Group and one of China’s second-biggest commercial car seller last year, set up the joint venture in 2002 with Anhui Ankai Automobile and Liaoning Shuguang Automobile, with Ankai holding 40 percent and Shuguang the remaining 30 percent.

The venture has been struggling for some time, making a loss for five years straight amid the slowing down and recent shrinkage of China’s passenger car market. It lost nearly CNY200 million (USD28 million) total during those years, prompting Ankai to sell its entire stake in the company in March. Guangxi province-based parts maker Fangsheng Group paid CNY48.6 million for the shares.

Foton itself is also in trouble, posting a CNY296 million first-quarter deficit in the wake of Covid-19. It made CNY80.2 million in profit in the year-ago period, but has relied on selling assets to remain profitable for the past six years.

Editors: Dou Shicong, James Boynton