In China, the competition in the automotive market has intensified, with eight listed car companies facing pressure on their performance in the first half of the year. Companies like BYD, Great Wall, and Changan saw a significant decrease in net profits, while Guangzhou Auto, Geely, and JAC continued to incur losses. Moreover, NIO turned from profit to loss, indicating an overall weakening of the industry’s profitability.
According to reports from mainland Chinese media, as the growth dividend in the domestic auto market in China diminishes, many traditional car companies struggled to maintain their revenue scale in the first half of 2026. However, there was a widespread decline in net profits, with “increased revenue but decreased profits” becoming the industry norm.
As a leading player in the industry, BYD’s net profit attributable to shareholders in the first half of the year was 12.325 billion yuan, a year-on-year decrease of 20.5%. Despite still leading the industry, fierce competition in the domestic market has significantly squeezed its profitability space.
In addition, SAIC Group’s net profit decreased by 14.38% year-on-year; Geely Auto’s net profit dropped by 2%, the smallest decline among mainstream car companies.
On the other hand, many car companies found themselves in even more dire operational predicaments. While Great Wall Motor’s revenue grew by 10.58% in the first half of the year, its net profit plummeted by 61.11% year-on-year. Changan Auto’s revenue and profit both decreased, with net profit falling by 64.32% year-on-year; Chery Auto’s net profit dropped by 11.7%.
The number of companies in the loss-making camp further expanded. SEAT turned from profit to loss, with a net loss of 1.717 billion yuan; GAC Group’s net loss was 4.467 billion yuan, a 75.98% increase year-on-year, marking it as the mainstream listed car company with the largest loss. At the same time, JAC Auto saw its revenue grow by 14.31% in the first half of the year, but its net profit attributable to shareholders was still a loss of 749 million yuan. After deducting non-recurring items, the loss expanded to 991 million yuan, with an operating cash flow outflow of 5.288 billion yuan, highlighting financial pressure.
New energy car companies were not spared either. Li Auto recorded a net loss of 1.7 billion yuan in the second quarter, accumulating a total loss of 3.99 billion yuan in the first half of the year, a turn from profit to loss, with a nearly halved gross profit margin; Xiaopeng Motors also reported a net loss of 3.121 billion yuan during the same period.
The total loss for the mentioned five car companies amounted to 14.044 billion yuan.
Industry analysts pointed out that although overseas export sales have significantly increased and become a growth highlight for some companies, the costs associated with tariffs, channel construction, and exchange rate fluctuations have prevented the overseas business from effectively boosting overall profitability.
Nature Protection: Zheng Haoyu