CPCA secretary-general Cui Dongshu says in 1H the Chinese auto industry is in
deep transformation and intense competition for existing demand as NEV
penetration rises. The sector shows revenue growth without profit and widening
divergence: domestic OEMs still growing top line but at a slower pace and remain
smaller than global peers; profits have concentrated with upstream battery
leaders while downstream dealers face a severe survival crisis. Price wars and
high inventories are intensifying cash-flow stress and supply-chain payment
pressures, raising systemic risk. Cui notes a multi-dimensional deterioration
across revenue, gross margin, expenses, net profit, inventory and cash flow, and
highlights that overseas sales—where volumes and margins are higher—are the most
important route to relief for most automakers.
