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Chinese auto industry’s revenue reached 5.3 trillion yuan in the first seven months of the year, rising by 12% from a year earlier and cost rose 12% to 258.3 billion yuan, said Cui Dongshu, secretary general of the China Passenger Car Association in an article.
The industry’s profit grew by 1% to 258.3 billion yuan, with a profit margin of 4.9%, lower than an average of 5.4% for overall industrial companies, said Cui
In July alone, the auto industry’s revenue rose by 5% year over year to 821.7 billion yuan ad due to high cost of upstream material lithium carbonate, the industry’s production cost rose by 6% to 714.9 billion yuan, said Cui.
That left the profit slump 30% to 40.7 billion yuan, with a profit margin of 5%, he said..
Traditional fuel vehicles are profitable, but their sales are shrinking rapidly, and in contrast, the new energy vehicle industry is growing rapidly, but NEV makers are suffering large losses due to high production cost, said Cui.