The Chinese automotive industry is facing a crisis of “internal competition,” with intensified price wars. According to statistics from Chinese media, although the net profit of Japanese Toyota Motor Corporation dropped by 30% in the first half of the year, it is still 1.9 times the total net profit of 16 listed Chinese car companies.
In the first four months of this year, China’s automobile production and sales volume both exceeded 10 million vehicles for the first time, a growth of over 10% compared to the same period last year. However, beneath these impressive numbers lie hidden concerns.
As reported by mainland China’s First Financial, in September, Chinese listed car companies have successively released their financial reports for the first half of 2025. According to statistics, the combined net profit (including losses) of the 16 car companies listed on A-shares and H-shares exceeded 39.2 billion yuan. BYD, Geely Automobile, and Great Wall Motor are the top three profitable companies, with a total net profit of 31.1 billion yuan, accounting for nearly 80% of the total profits of the 16 car companies.
Even the top three most profitable car companies in the first half of the year only made profits equivalent to Ningde Times, a power battery manufacturer, whose net profit in the first half of the year was 30.49 billion yuan. When compared to the most profitable car company globally, Toyota Motor Corporation, the disparity becomes even more pronounced.
Toyota Motor Corporation’s net profit in the first half of this year (fiscal year 2025 Q4 + fiscal year 2026 Q1) plummeted by over 30%, but still exceeded 1.5 trillion yen (approximately 72.7 billion yuan), which is 1.9 times the total net profit of the 16 listed Chinese car companies in the first half of the year.
Despite BYD and Geely Automobile rising to the third and fourth positions in the global top 10 automotive sales in the first half of the year, surpassing the Japanese giants Honda and Nissan for the first time, the overall profitability of the Chinese automotive industry is at a historical low amidst the intensified competition in the domestic market.
From January to July this year, the profit of the Chinese automotive industry was 273.7 billion yuan, a 0.9% increase year-on-year; the profit margin of the automotive industry was 4.6%, slightly lower than the 4.8% profit margin from January to June. It is an improvement from 4.3% in 2024, but still remains at historically low levels.
Moreover, in the first half of this year, six Chinese listed car companies incurred losses, including GAC Group, BAIC BluePark, Xiaopeng Motors, JAC Motors, Zotye Auto, and Haima Automobile, with a total accumulated loss of nearly 7 billion yuan. Seven car companies saw negative growth in net profit, all being major players, including Changan Automobile, SAIC Group, GAC Group, Great Wall Motor, BAIC Motor, JAC Motors, and Geely Automobile.