Profits in China's auto industry fell 22
China's auto industry profits fall 22.8% despite rising revenue, hit by battery and chip costs.
Profits in China's auto industry fell 22.8% over the period, even as sector revenue rose. The decline stems from higher battery and memory chip costs, combined with intense competition that prevented manufacturers from raising sales prices.
Capacity utilization declined and sector margins contracted. Profits shifted upstream in the value chain — toward component suppliers — at the expense of automakers.
Overcapacity and destructive price competition are identified as the sector's core problems.
Meanwhile, major global automakers are pressing the U.S. Congress to adopt a permanent ban on Chinese vehicles on American soil, 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 — without steering wheels 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 (UNECE) into national law.
Thailand is set to approve a hike to 35% in taxes on imported electric vehicles without local content, starting in January, to protect domestic suppliers and encourage local assembly. The policy responds to a sharp surge in Chinese imports.
Paccar will open a spare parts distribution center in France to strengthen support for dealers of its DAF brand. The announcement follows strong quarterly results, with truck deliveries, revenue and profit all up, and DAF expecting a broadly stable European heavy-duty truck market through 2027.
This analysis was produced with the assistance of artificial intelligence, from institutional sources and verifiable open data. AI Transparency