Institution Forecasts EV Profit Margins to Rebound in Q3 2026

Yun Zheng, Global Senior Partner at Roland Berger and Head of Automotive for Asia, recently stated that the profit margin of China's automotive industry is expected to rebound in Q3 2026. Although vehicle sales volume is projected to reach a new high in 2025, the industry as a whole faces profitability pressures, with an average profit margin of only around 4.4%, and more than half of dealerships operating at a loss. Currently, signs of the ongoing "price war" returning to rationality are emerging, and industry concentration is gradually increasing. Future market competition will accelerate divergence, with the core battleground shifting to the capital level—where capital liquidity and the efficiency of capital allocation will become key factors reshaping the industry landscape.