Profits in China's auto industry fell 22

Profits in China's auto industry fell 22.8% despite rising revenue, according to data published on November 3, 2026. The decline stems from higher battery and memory chip costs, combined with intense competition that prevented manufacturers from passing those increases on to selling prices.

Capacity utilization declined and margins contracted. Profits shifted upstream in the value chain, exposing overcapacity and destructive price competition as the sector's central problems.

Separately, major automakers pressed the U.S. Congress to adopt a permanent ban on Chinese vehicles in the United States, citing security and industrial risks. Existing tariffs and connected-vehicle rules already restrict their entry, but the industry fears President Trump may allow Chinese manufacturers to produce locally.

In Japan, authorities are preparing standardized certification rules for Level 4 and Level 5 autonomous vehicles, with no steering wheel or pedals. The framework would simplify mass production of robotaxis, buses and delivery vehicles, while incorporating the safety requirements of the WP.29 regulation of the United Nations Economic Commission for Europe into national law.

Thailand is set to approve a rise to 35% in taxes on imported electric vehicles without local content from January, to protect domestic suppliers and encourage local assembly. The policy responds to a sharp surge in Chinese imports while preserving the possibility of preferential treatment tied to new investment.

Finally, Paccar will open a parts distribution center in France to strengthen support for DAF dealers. The announcement follows strong quarterly results, with truck deliveries, revenue and profits all higher, while DAF expects the European heavy-duty truck market to remain broadly stable through 2027.