Listed Automakers Face Collective Pressure in Q1 Earnings

[Market Dynamics] The combined Q1 profits of ten listed automakers fell short of CATL's earnings, primarily due to foreign exchange losses and price wars.

Key Trend: Profit Divergence Intensifies, Only a Few Automakers Report Growth

Among 13 listed passenger vehicle manufacturers, 5 reported declining revenues, 5 incurred losses, and only 3 achieved year-over-year profit growth—two of which saw increases of less than 1%. BYD led in revenue with RMB 150.23 billion, yet its net profit plummeted 55.4% year-over-year to RMB 4.085 billion.

Key Metrics: Industry Profit Margin Hits Decade-Low

In Q1 2026, the automotive industry’s sales profit margin dropped to 3.2%, falling even further to 2.9% in January–February—the lowest level in ten years. Most automakers posted net profit margins below 3%, with only two exceeding 5%.

Strategic Shift: Revenue Growth Without Profitability Forces De Facto Price Hikes

Under mounting pressure, over 10 new energy vehicle (NEV) makers have reduced terminal discounts to effectively raise prices. Examples include Changan Qiyuan increasing prices by RMB 3,000 and BYD raising optional advanced driver-assistance system (ADAS) packages by RMB 2,100. The industry is accelerating structural adjustments.