Battery Makers Outearn Automakers by a Wide Margin

[Market Landscape] In 2025, battery manufacturers saw explosive profit growth, while automakers faced mounting profitability challenges.

Key Developments: CATL Earns CNY 200 Million Daily as Automaker Margins Get Squeezed

CATL reported a net profit of CNY 72.2 billion in 2025—double that of BYD and quadruple that of Geely—translating to nearly CNY 200 million in daily net earnings. Second-tier battery makers also staged strong comebacks: Zhenli New Energy's net profit surged by 788%, CALB grew by 148%, and Ruipu Lanjun turned profitable, earning nearly CNY 7 billion in net profit.

Industry Impact: Automotive Manufacturing Profits Plummet

China's automotive industry recorded total profits of just CNY 461 billion in 2025, a mere 0.6% year-over-year increase. In the first two months of 2026, profits plunged by 30.2% year-over-year, making it the worst-performing sector in manufacturing. Cui Dongshu, Secretary-General of the China Passenger Car Association, publicly questioned whether battery makers are extracting excessive profits, sparking industry-wide reflection on "who really holds the power in the supply chain."