(Yicai) Sept. 7 -- The combined net profit of 15 listed Chinese automakers in the first six months amounted to less than half of that of battery manufacturer Contemporary Amperex Technology, as industry profits continue to concentrate among leading battery suppliers.

The 15 vehicle manufacturers posted a 40 percent drop in combined net profit in the six months ended June 30 from a year earlier to CNY21 billion (USD3.1 billion), according to their financial reports. Eleven out of the 15 firms recorded declining net profit or sustained losses during the period. By comparison, CATL reported a 42 percent jump in net profit over the period to CNY43.2 billion (USD6.3 billion).

The gap between carmakers and major battery suppliers is not new. In 2022, CATL’s annual net profit reached CNY8.2 billion (USD1.2 billion), surpassing the CNY6.9 billion earned by SAIC Motor, the most profitable automaker that year, for the first time. Ningde-based CATL’s profit was just CNY6.2 billion (USD914 million) below the combined net profit of the 15 automakers.

By 2025, CATL’s net profit had surged to CNY72.2 billion (USD10.6 billion), outpacing the 15 carmakers’ combined net profit of CNY67.8 billion (USD10 billion). Six of those auto manufacturers posted net losses for the year.

Industry data underscore the difficult operating environment facing China’s auto sector. Amid fierce price wars and rising raw‑material costs, the industry’s overall profit margin tumbled to 3.6 percent in the first seven months from 5.7 percent in 2022, hitting a four‑year low, according to the latest data from the China Passenger‑Car Association.

At the 2026 World Power‑Battery Conference held last week, Voyah Automobile Chairman Lu Fang complained that carmakers are facing significant operating pressure, as the prices of raw materials across the board climb. Lithium carbonate, a key raw material for power batteries, surged more than 160 percent from the end of last year to May 31.

China’s power‑battery sector posted a combined net profit of CNY68.3 billion (USD10 billion) in the six months ended June 30, said Cui Dongshu, secretary‑general of the CPCA. Sector leader CATL accounted for 63.2 percent, or CNY43.2 billion (USD6.3 billion), of this, with a net‑profit margin of 17 percent. By comparison, BYD, a major automaker with in‑house battery manufacturing capabilities, achieved net profit of only CNY12.3 billion (USD1.8 billion) in the first six months, with its net‑profit margin narrowing to 4 percent.

Editors: Tang Shihua, Kim Taylor