CATL Posts Q1 Daily Net Profit of ¥230M—Exceeding Combined Total of Over 10 Automakers as Industry Margins Come Under Pressure

In the first quarter of 2026, CATL reported a net profit of RMB 20.7 billion—averaging approximately RMB 230 million in daily earnings—surpassing the combined net profits of ten major Chinese automakers, including BYD, SAIC, and Geely, which totaled RMB 17.5 billion during the same period. Meanwhile, the overall profit margin of China’s automotive industry stood at just 3.4% in the same quarter, significantly below the industrial average of 6.1%. With battery packs accounting for 40% to 50% of a vehicle’s total cost, rising prices of key raw materials such as lithium carbonate and automotive chips have further intensified cost pressures on automakers. From January to May 2026, a record 550 new vehicle models were launched in China, fueling fierce market competition. Automakers have resorted to aggressive price cuts to gain market share, causing gross margins to continuously decline, with some brands barely maintaining minimal profitability. In response to this excessive competition, relevant government authorities have signaled policy guidance aimed at promoting healthy industry development and curbing disorderly competition. Several automakers have also begun adjusting their strategies, shifting focus from pure sales volume growth toward achieving sustainable and reasonable profit margins.