CPCA secretary-general Cui Dongshu said China’s auto industry recorded Jan–Jun
2026 revenue of RMB 5.19 trillion (+1.8% YoY), costs of RMB 4.61 trillion
(+2.8%) and profit of RMB 195.4 billion (down 20% YoY), implying a profit margin
of 3.8% versus a 6.5% average for downstream industrial firms. Local authorities
have stepped up implementation of ‘Two New’ policies to boost domestic demand,
but auto profitability lags other consumer sectors. Cui said ongoing national
anti-involution measures, intensified upstream cost pressure, acute pricing
issues, a sharp rise in oil prices and surging profits in nonferrous metals and
semiconductors are prompting stronger buyer hesitation, increasing operational
stress on carmakers and damaging the sector’s high-quality development
prospects.
