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, in

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.