Gasgoo Munich- Data released by Cui Dongshu of the China Passenger Car Association (CPCA) reveals that from January through September, auto output totaled 23.37 million units — a 4% annual decline. Industry revenue climbed 2.6% to 8.04 trillion yuan, while costs rose 3.8% to 7.16 trillion yuan. That left profits at 267.5 billion yuan, down 23%, squeezing the sales profit margin to 3.3%. In September alone, production reached 3.06 million units. Revenue edged up 0.6% to 1.04 trillion yuan, but costs grew 2.5% to 925.7 billion yuan. Consequently, profits plummeted 68% to 142 billion yuan, dragging the margin down to 1.4% — the lowest in four years and below the monthly low of 1.8% seen in December 2025. For context, industry profit margins stood at 4.3% in 2024 and 4.1% in 2025.
Based on National Bureau of Statistics production metrics, average revenue per vehicle across the supply chain came in at 344,000 yuan in the first nine months — a 5.8% increase that includes double counting. However, per-vehicle costs climbed 7% to 306,000 yuan, and taxes rose 7.2% to 26,000 yuan. As a result, gross profit per vehicle slumped 21% to 11,000 yuan.
Cost pressures are mounting. Memory prices have surged, lithium carbonate costs have doubled, and commodity prices remain elevated, squeezing raw material expenses for mid- and downstream suppliers. Meanwhile, upstream sectors like non-ferrous metals and semiconductors are enjoying a profit boom, effectively squeezing automakers from the top. This upstream squeeze, combined with pricing wars and rising fuel costs, has left consumers on the sidelines, intensifying the strain on automakers. Although government stimulus policies are gradually unlocking domestic demand, the auto sector's profitability is lagging behind other consumer goods. September brought heavy pressure on internal combustion engine production and sales — exacerbated by the Mid-Autumn Festival holiday — weighing heavily on industry earnings.
