Auto Industry Profits Halved: Supply Chain Power Shift Behind ¥13k Per-Vehicle Margin

In Jan–Jun 2026, China's automotive industry posted a total profit of ¥195.4 billion, down 20% YoY, while revenue grew by 1.8% and costs rose by 2.8%. Breaking it down, average revenue per vehicle was ¥344,000, but gross profit per vehicle was only ¥13,000—a gross margin under 3.8%. This figure is even lower than that of many consumer electronics OEMs. Cui Dongshu, Secretary-General of the Passenger Car Market Information Joint Branch, bluntly stated they are "severely squeezed by upstream players," but in my view, this isn't just about upstream pressure; it reflects a structural power shift across the entire automotive value chain.