Chinese automakers face profit struggles and varying losses

Financial reports from the first half of the year reveal significant profit challenges for Chinese automotive manufacturers. While some companies achieved growth, many face slim margins or substantial losses.

GAC Group reported a net loss of 4.467 billion yuan for the first half of 2026, representing a 75.98% increase in losses compared to the previous year, despite a 9.38% increase in total revenue to 46.121 billion yuan.

Other manufacturers showed varying levels of profitability. Geely Auto reported a profit margin of 5.2% with a per-vehicle profit of 6,389 yuan, while Great Wall Motor saw a 2.4% margin and 4,281 yuan per vehicle. BYD recorded a 2.7% margin with 5,770 yuan per vehicle. In contrast, Changan and Leapmotor reported much lower margins, at approximately 0.6% to 0.8% and 0.55% respectively.

Industry data indicates that while domestic sales in China fell by 21.1% year-on-year, exports grew by 65.3%. Battery manufacturer CATL maintained a significantly higher profit margin of 15.6%.