Gasgoo Munich- CATL addressed recent investor concerns over demand for the new energy sector in 2027 in an investor relations filing dated October 20. From the company's vantage point, industry demand that year remains promising.
CATL noted that while overall domestic passenger car sales dipped in 2026, the electrification rate is climbing rapidly. So is the average battery capacity per vehicle. As a result, the power battery market for domestic new energy passenger cars still managed positive growth.
Image source: CATL
Electrification among domestic commercial vehicles is accelerating as well. In Europe, the shift to electric power shows continuity, with a steady stream of competitive new models hitting the market. Meanwhile, the potential for electrification in other regions is gradually unlocking.
Data shows domestic power battery installations climbed 17% year-on-year in the first nine months of 2026, while sales (including exports) surged 38%—growth driven largely by higher battery capacity per vehicle. The average battery capacity for new energy vehicles hit 69.5 kWh during that period, a 32% jump, with both pure electric and plug-in hybrid models seeing significant gains.
Image source: Baidu Stock Tong
CATL's response comes against a backdrop of sustained pressure on its stock price. As of October 21, shares had halved from their historical peak. Several brokerages have already trimmed their profit forecasts for CATL for 2027. Adding to the strain are shifts in tax policy: the value-added tax rebate on battery exports was cut from 9% to 6% starting April 1, 2026, and will be eliminated entirely on January 1, 2027. CATL indicated it is in talks with customers to share the burden of these policy shocks.
