On September 24, 2026, Chinese media outlet China Auto News reported that while sales volume continues to increase in the automobile market, the profit margins of various automakers, as seen from their interim financial results, are already in an unoptimistic situation.

The article introduced that many automakers are seeing their profit per vehicle remain at only a few thousand yuan, as they invest significant capital not only in acquiring new customers and maintaining existing market share but also in areas such as autonomous driving, computing, batteries, semiconductor development, and celebrity endorsements. It pointed out that while sales volume appears strong on the surface, in reality, the cost burden increases with every sale.

It then referred to data stating that the total net profit attributable to parent companies for 15 major listed automakers from January to June this year was approximately 21.8 billion yuan (approximately 515 billion yen), with the net profit margin remaining at a mere 1.52%. It reported that only a very small number of manufacturers saw an increase in net profit, with many experiencing profit declines or widening losses, and some companies falling into the red.

Furthermore, it introduced that Cui Dongshu, Secretary General of the China Passenger Car Market Information Joint Conference, explained that management pressure continues to increase due to the intensifying price competition, rising costs of fuel, semiconductors, and non-ferrous metals, as well as reduced purchasing by some consumers, among other multiple factors.

It also mentioned that Cao He, President of China Auto Dealers Investment Management (Beijing), pointed out that the 'high' cost of growth is a result of various overlapping factors, and that the industry is falling into a state of 'loss-making customer attraction' where market share and increased sales are gained at the expense of profit. He further explained that prolonged low profits or loss-making sales reduce cash inflow, while simultaneously increasing financial risks due to rising development, production, and sales promotion costs. This also puts pressure on development funds, preventing the introduction of new products and technologies, and gradually putting them at a disadvantage in competition.

According to the article, Cao further pointed out the urgency and necessity for automakers to deeply recognize the need to transform their traditional development models and actively promote business transformation to achieve sustainable development. He expressed the view that this is necessary not just for individual manufacturers, but for the entire automotive industry to aim for high-quality development. (Edited and Translated by Kawashiri)