Nearly 70 Models Slash Prices as Auto Industry Profit Margin Drops to 2.9%

Nearly 70 car models have collectively slashed prices. Between January–February 2017 and January–February 2026, the automotive industry’s profit margin fell from 8% to 2.9%. Over the same period, the non-ferrous metals sector saw its profit margin surge from 9% to 39.4%, while the petroleum industry’s profit margin rose from 5% to approximately 30%. As downstream players in the supply chain, automakers have experienced a continuous decline in bargaining power, with their profit margins significantly squeezed. Upstream segments—such as batteries and chips—have demonstrated substantially higher profitability in automakers’ financial reports, leaving vehicle manufacturers grappling with intensifying market competition and resorting to lower prices to gain market share.