Profitability in China\u2019s automotive industry fell to 4.4% in January\u2013November 2025, the second-lowest level on record. The margin was lower only in 2024, when it dropped to 4.3%, CarNewsChina reports, citing the secretary-general of the China Passenger Car Association.<\/p>\n
On average, total revenue across the automotive value chain amounted to about $45,800 per vehicle, while gross profit was only around $2,000. Despite growing production volumes, the industry continues to operate under strong pressure from rising costs and intense competition.<\/p>\n
Total revenue of China\u2019s auto industry exceeded $1.42 trillion over the eleven-month period, up 8.1% year on year. At the same time, costs grew faster \u2014 by 9% to $1.26 trillion. Aggregate industry profit reached $62.6 billion, up 7.5% year on year, but this was not enough to improve overall profitability.<\/p>\n
Experts attribute the weak financial performance to two key factors. On the one hand, costs continue to rise, particularly due to volatility in battery raw material prices and higher labor expenses. On the other hand, domestic competition between electric vehicles and traditional internal combustion engine cars has intensified. Price wars that initially began in the new EV segment have gradually spread to the ICE market as well, further eroding manufacturers\u2019 margins.<\/p>\n
In November, the situation improved slightly. Industry revenue rose 9.7% year on year to $162.2 billion, although costs increased even faster, by 11.4%. November profit totaled $7.23 billion, up 39.2% from a year earlier, and margins rebounded to 4.4% from 3.9% in October.<\/p>\n
Overall, China produced 31.09 million vehicles between January and November 2025, an 11% increase compared with the same period last year. Production of electric vehicles and hybrids grew by 27% to 14.53 million units, raising their share of total output to 47%. Production of gasoline-powered vehicles remained virtually unchanged at 16.57 million units.<\/p>\n","protected":false},"featured_media":150906,"menu_order":0,"template":"","newscat":[9],"newstag":[],"issues":[],"class_list":["post-150905","news","type-news","status-publish","has-post-thumbnail","hentry","newscat-novosti"],"_links":{"self":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/news\/150905","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/types\/news"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/media\/150906"}],"wp:attachment":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/media?parent=150905"}],"wp:term":[{"taxonomy":"newscat","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/newscat?post=150905"},{"taxonomy":"newstag","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/newstag?post=150905"},{"taxonomy":"issues","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/issues?post=150905"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}