BUSINESS

China Auto Industry Profits Plunge 68%

Published: Nov. 2, 2026 12:32 p.m. GMT+8

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Chinese automakers saw total profits tumble 68% year-on-year to 14.2 billion yuan ($2.1 billion) in September as rising costs and sluggish demand eat into margins.

The deteriorating financial performance underscores the brutal reality of the world’s largest auto market, where relentless price competition is hollowing out margins and forcing car companies to rethink their strategies.

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Chinese automakers' September profit plunged 68% YoY to ¥14.2 billion ($2.1 billion); industry profit margin fell to 1.4%.
First three quarters: revenue rose 2.6% to ¥8 trillion, costs grew 3.8%, profit dropped 23% to ¥267.5 billion (3.3% margin).
SAIC Q3 net profit fell 76.7%; Changan posted a net loss; Chery grew sales 10.5%, aided by exports (70.3% of group volume).

AI generated, for reference only

Who’s Who

SAIC Motor Corp. Ltd.: SAIC Motor Corp. Ltd., an industry leader, saw its third-quarter net profit plummet 76.7% year-on-year to 486 million yuan. In the first three quarters, vehicle sales dipped 1.5% to 3.1 million units, revenue fell 2.9% to 455.2 billion yuan, and net profit dropped 30.4% to 5.6 billion yuan, reflecting intense price competition.

Chongqing Changan Automobile Co. Ltd.: Chongqing Changan Automobile Co. Ltd. swung to a net loss of 760 million yuan in Q3 2026. In the first nine months, sales fell 18.1% to 1.7 million vehicles, revenue declined 11.4% to 101.9 billion yuan, and net profit plunged 98.1% to 59.3 million yuan. Operating cash outflow reached 11.4 billion yuan.

Anhui Jianghuai Automobile Group Corp. Ltd.: Anhui Jianghuai Automobile Group (JAC) reported a narrower net loss of 1.1 billion yuan in the first three quarters of 2026, aided by premium NEV sales that boosted gross profit. Revenue rose 11.3% to 34.4 billion yuan despite a 9.4% sales decline to 255,000 vehicles. Uncertainty looms after brake failures in its Huawei-partnered Maextro brand drew regulatory investigation.

Huawei Technologies Co. Ltd.: According to the article, Huawei Technologies Co. Ltd. partners with Chinese automakers on premium NEV brands. It collaborates with JAC on the luxury Maextro brand (priced above 600,000 yuan), with Seres on Aito-branded vehicles, and with Chery on Luxeed cars. The article notes quality concerns, as authorities investigated brake pedal bracket failures in Maextro V800 vehicles.

Seres Group Co. Ltd.: Seres Group Co. Ltd., which produces Aito-branded NEVs with Huawei, posted a Q3 net profit of 1.4 billion yuan but a net loss excluding nonrecurring items. In the first nine months of 2026, its sales fell 16.9% to 283,000 vehicles, revenue dropped 22.6% to 85.6 billion yuan, and net loss was 297 million yuan. It blamed the industry cycle, rising component costs, and higher R&D expenses.

Chery Automobile Co. Ltd.: Chery Automobile Co. Ltd. was the best performer. In the first three quarters of 2026, sales grew 10.5% to 2.1 million vehicles, revenue rose 12.3% to 241.2 billion yuan, and net profit stayed flat at 14.6 billion yuan, supported by strong exports (70.3% of group sales). However, domestic high-end sales struggled, with Exeed plunging 40.9% and Luxeed dropping 24.5%.

Chery Group: Chery Group, parent of Chery Automobile, reported strong performance in 2026's first three quarters: group sales reached 2.2 million vehicles, with exports accounting for 70.3%. Chery Automobile's sales grew 10.5% to 2.1 million units, revenue rose 12.3% to 241.2 billion yuan, and net profit held at 14.6 billion yuan. However, domestic premium brands Exeed and Luxeed saw significant sales declines.

Dongchedi: Dongchedi is an auto media outlet. It released a test video showing brake pedal brackets of three Maextro V800 vehicles breaking during repeated emergency braking tests at 100 km/h. This prompted intervention by China's Ministry of Industry and Information Technology, potentially impacting Maextro's sales.

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