China Major Carmakers Face Profit Pressure Despite Strong Export Growth
China’s automotive industry continued to face pressure on profits during the first half of 2026, even as several major carmakers increased their overseas sales significantly.
Eight A-share passenger vehicle manufacturers — SAIC Motor, BYD, Great Wall Motor, Changan Automobile, Seres, GAC Group, BAIC BluePark and Haima Automobile — recorded combined revenue of RMB923.063 billion in the first six months of the year.
Among them, BYD reported the highest revenue at RMB344.815 billion, followed by SAIC Motor at RMB294.987 billion and Great Wall Motor at RMB102.101 billion.
BAIC BluePark recorded revenue of RMB11.597 billion, an increase of 21.86% year-on-year, while GAC Group reached RMB46.121 billion, up 9.38%. Of the three companies with revenue above RMB100 billion, Great Wall Motor was the only one to record year-on-year revenue growth, increasing by 10.58%.
Profits Under Pressure
Revenue growth did not translate into stronger profits for most of the companies.
Only BYD, SAIC Motor, Great Wall Motor and Changan Automobile reported positive net profit attributable to shareholders. Their profits stood at RMB12.325 billion, RMB5.152 billion, RMB2.465 billion and RMB817 million, respectively.
All four recorded year-on-year declines. Changan Automobile suffered the biggest drop at 64.32%, while Great Wall Motor’s profit fell by 61.11%.
Seres moved from a profit into a loss, while GAC Group and Haima Automobile both reported significantly larger losses compared with the same period last year. BAIC BluePark recorded a loss of RMB1.938 billion, although this was an improvement compared with its loss a year earlier.
Several rising costs have added to the pressure. The average daily price of battery-grade lithium carbonate increased 132.2% year-on-year during the first half of 2026. Automotive-grade chips also faced structural shortages, while prices for non-ferrous metals and chemical raw materials increased.
China’s National Bureau of Statistics reported that revenue in the automotive manufacturing sector increased by only 1.8%, while costs rose 2.8% and total profits fell 19.5%.
Exports Become More Important
The domestic market also remained difficult. Vehicle production in China declined 4%, while sales dropped 4.1% year-on-year.
This has encouraged Chinese automakers to look overseas for additional growth. China exported 5.096 million vehicles during the first half of 2026, representing a major 65.3% increase from the same period last year.
BYD exported 790,000 vehicles, up 68%, while Changan Automobile sold 455,000 vehicles overseas, an increase of 51.9%. Changan’s overseas revenue reached RMB21.942 billion, up 78.77%.
Great Wall Motor exported 289,000 vehicles, an increase of 45.46%, with overseas sales making up more than half of its total volume. GAC Group’s self-owned brands also recorded strong growth, with exports reaching 121,500 units, up 132%.
However, overseas expansion has not completely solved the profit problem. Several manufacturers reported that currency movements and changes to overseas tax policies affected their earnings.
Great Wall Motor said delayed overseas tax subsidies and exchange-rate fluctuations were major reasons for its profit decline. BYD also pointed to foreign exchange losses as a short-term pressure despite stable core operations.
Changan Automobile, meanwhile, said that without the impact of foreign exchange gains, its net profit attributable to shareholders would actually have increased by 12% year-on-year.
The first half of 2026 therefore shows a mixed picture for China’s major carmakers. Export volumes are growing quickly, but higher costs, weaker domestic demand and currency-related losses continue to make it difficult to turn that growth into stronger profits.
