Price War at Charging Stations Slashes Profits: Annual Revenue Plummets from $500K to $60K

China's domestic EV charging station industry is embroiled in a fierce price war, causing profits to plummet dramatically. According to a March 24 report by CCTV Finance, a public charging station commissioned in 2020 has seen its annual revenue drop sharply from an initial RMB 500,000 to approximately RMB 80,000 today, leaving a net profit of only RMB 60,000. Charging fees consist of electricity costs and service fees—the latter previously being the main source of profit for operators. However, with government subsidies phased out and a surge in nearby charging stations, service fees have been continuously slashed. A senior executive at a leading platform in Changzhou, Jiangsu Province, revealed that the cost per kilowatt-hour (kWh) at a standard fast-charging station is about RMB 0.40, meaning any service fee below this level results in losses. One company estimates that for a station requiring an investment of RMB 1.2 million, the net profit per kWh is merely RMB 0.04. Industry insiders warn that excessive internal competition is already hampering upstream equipment suppliers’ ability to upgrade their technologies, potentially dragging down the entire sector’s development.