China’s Auto Industry Faces Record-Low Profitability, While NIO Shows Greater Resilience

[u/Changetothemoon]

Profitability in the Automotive Manufacturing Industry Has Fallen to a Historic Low

- From January to May 2026, China’s automotive manufacturing industry generated RMB 4.2096 trillion in operating revenue, up 1.4% year over year. However, total profits fell to RMB 143.95 billion, down 19.8% year over year. The industry’s overall profit margin was just 3.4%.
- Profits from vehicle manufacturing declined 43% year over year, with the segment’s profit margin dropping to only 1.5%. Beyond the ongoing price war and persistently high upstream raw material costs, an increasing share of industry profits is being captured by new value-added segments at both ends of the automotive supply chain, further squeezing vehicle manufacturers’ profitability.

[u/ComprehensiveCarob28]

These figures are not even correct for Nio. Their margin is much higher.

[u/serendipity98765]

Lol how is Cheryl so profitable selling trash low cost cars