Auto Industry Profit Margin Hits Record Low of 4.1% in 2025

In 2025, China's auto industry recorded a profit margin of 4.1%, down 0.2 percentage points year-over-year, marking the lowest level in history. According to Cui Dongshu, Secretary-General of the China Passenger Car Association, citing data from the National Bureau of Statistics, the industry generated total revenue of RMB 11.2 trillion (+7.1% YoY) and incurred costs of RMB 9.8 trillion (+8.1% YoY), resulting in profits of just RMB 461 billion—a mere 0.6% increase. The profit margin for December alone dropped further to 1.8%, down 2.3 percentage points year-over-year, likely due to year-end promotional discounts and rising costs. Overall, the auto sector’s profitability remains significantly below the 5.9% average profit margin of industrial enterprises nationwide, reflecting persistent pressure on earnings. Industry insiders are urging accelerated efforts to reduce costs, improve efficiency, and enhance product competitiveness to bolster profitability.