Nearly 70 car models have collectively reduced their prices.

The automotive industry's profits have seen a significant decline, and the most direct manifestation is the serious imbalance in profit distribution along the industry chain. In the middle and lower reaches, car manufacturers have seen their bargaining power in the industry chain continue to decrease, becoming the sector with the most severely squeezed profits. According to Cui Dongshu, secretary of the Sub-Committee of the China Automobile Dealers Association for Passenger Car Market Information Joint Meeting, in January-February 2026, the profit margin of the non-ferrous metals industry was 39.4%, compared to only 9% in 2017; while the profit margin of the petroleum industry has jumped from 5% to about 30%. In sharp contrast, the profit margin of the automotive industry has dropped from 8% in 2017 to 2.9%. "The automotive industry has made a huge contribution to the upstream, and the contrast between the upstream and downstream is becoming increasingly clear. The middle and lower reaches, especially represented by the automotive industry, are under tremendous pressure and currently facing difficult times," said Cui Dongshu. "Every household sells the same dumplings, but in the end it's the one selling dumpling wrappers who makes the money." Zhang Yun, Global CEO and China Chairman of L.E.K. Consulting, stated during a forum interview that behind the industry's rapid growth, the industry is deeply mired in an "intense competition" quagmire. Car companies are losing money while shouting for business, with profits being squeezed by the upstream battery and chip sectors. This viewpoint is confirmed in the financial reports of battery and car manufacturers.