(Yicai Global) Oct. 31 -- Changan Automobile, the local half of Ford and Mazda joint ventures in China and one of the country's 'big four' state-owned automakers, narrowed its third-quarter loss this year as its partnerships with foreign carmakers boosted sales and showed the potential to make Changan profitable again.

The Chongqing-based firm, which also has JVs with Groupe PSA and Suzuki, cut its July to September loss by 5.6 percent to CNY421 million (USD59.8 million) as revenue leaped 7.3 percent to CNY15.2 billion (USD2.2 billion) , according to its quarterly report published yesterday. Its total loss for the first nine months was still CNY2.7 billion following a rough start to the year and an industry-wide market decline.

Improved performance at the Changan Ford could help steer Changan back in the right direction in the fourth quarter, according to a recent research report from Huaxi Securities. Its analysts also believe that Changan's revised product range -- featuring more high-end vehicles -- could lead to better sales and margins, reducing losses and possibly swinging the company into the black for the final fourth.

Changan's latest report did not disclose specific figures from its joint ventures, but its first-quarter and first-half accounts put the rampant losses down to their flagging revenue.

Its Ford JV was once Changan's biggest profit generator, contributing CNY9.1 billion and CNY6 billion in 2016 and 2017. But sales more than halved last year to 377,700 units, dragging its parent company's overall earnings down by CNY803 million.

The unit has been back on the rise since May, however, as a refreshed marketing strategy and new leadership begin to make their mark. Its wholesale shipments jumped 46 percent monthly to 24,949 in August, setting a single-month high for this year. The JV sold 53,700 cars throughout the third quarter, up 38 percent from the second but down 33.6 percent from a year earlier, with the costs of adding new models to its product range likely widening its loss from the July to September period of 2018.

Changan Mazda was in a similar boat, bumping up its figures from the second to third quarter but seeing sales decline 27.6 percent from the year-ago period.

The carmaker's own vehicle sales have performed more steadily than its JVs, with its units in Chongqing, Hebei, and Hefei all making quarter-to-quarter and year-to-year sales increases to shift 138,200, 210,000 and 29,000 cars in the third quarter.

Editors: Tang Shihua, James Boynton