Chinese new energy vehicle company Ideal Auto’s first quarter report for 2025 revealed a sharp decline in average net profit per vehicle, plummeting from 17,800 yuan in 2023 to less than 7,000 yuan Renminbi, a drop of over 60%. Pressure on Ideal Auto’s profitability is attributed to industry price wars and product structure adjustments, leading to a delay of nearly 20 days in the financial report release, sparking market concern.
Ideal Auto’s first quarter financial report for 2025 was released on the night of May 29, delayed by about 20 days compared to the same period in 2023.
According to the financial report, the company’s net profit in the first quarter was 646 million yuan, a year-on-year increase of 9.4%; delivery volume reached 93,000 vehicles, an increase of 16%. However, the average net profit per vehicle was only 7,000 yuan, significantly lower than the 17,800 yuan in the same period of 2023, marking a decline of over 60%.
Data from the China Passenger Car Association shows that the average price reduction of new energy vehicles in 2024 was 9.2%, and price wars continued into 2025. According to analysis by Changjiang Securities, Ideal Auto’s average vehicle selling price dropped to 266,000 yuan, down 36,000 yuan year-on-year, due to the increase in sales proportion of mid-to-low-priced models such as L6 and price reduction promotions.
First Financial reported that industry insiders pointed out that the “price war” in the automobile industry since the second half of 2022 is the main reason for the decline in Ideal Auto’s profitability. The delayed release of Ideal Auto’s financial report also raised concerns in the market. Investment bank professionals mentioned that some car companies had already announced their first quarter reports in April, and Ideal Auto’s delayed disclosure may indicate internal adjustments or challenges. In 2023, Ideal Auto attracted attention due to its relatively high profit performance, but Meituan CEO Wang Xing cashed out over 300 million Hong Kong dollars in September of that year, demonstrating a cautious attitude towards the long-term outlook.