Chinese Auto Industry Sees 68% Drop in Profit Despite Revenue Growth
The profit of China's automotive industry fell by 68% year-on-year in September 2026, reaching 14.2 billion yuan ($2.13 billion). Profitability dropped to 1.4%, the lowest level in nearly four years, according to Cui Dongshu, secretary-general of the China Passenger Car Association.
Revenue for the Chinese auto industry increased by 0.6% in September, totaling 1.0374 trillion yuan ($155.6 billion), but expenses rose significantly faster, by 2.5%, reaching 925.7 billion yuan ($138.8 billion).
Read this article in full and everything else in Telegram, ad-free
Open in TelegramThanks, I just want to finish reading here
In the first nine months of 2026, Chinese manufacturers produced 23.37 million vehicles, a 4% decrease from last year's figures. Meanwhile, industry revenue grew by 2.6% to 8.0435 trillion yuan ($1.206 trillion), while profit fell by 23% to 267.5 billion yuan ($40.1 billion).
The main reason for the profit decline was the faster growth of costs. From January to September 2026, the average revenue per vehicle increased by 5.8% to 344,000 yuan ($51,586), while production costs rose by 7% to 305,000 yuan ($45,738).
Hybrid and electric vehicles continue to gain traction, with production increasing by 12% to 12.46 million units, accounting for 53% of total automotive production in China. Conversely, production of internal combustion engine vehicles decreased by 17% to 10.92 million units.
