On December 8, reports emerged indicating that the CPCA Branch highlighted a severe trend of profit hollowing-out within the automotive sector, characterized by a notable concentration of profits at the upstream end of the supply chain. Despite the widespread and enthusiastic implementation of the "Two New Initiatives" (policies aimed at promoting new energy vehicles and energy-efficient appliances) across various regions, which have effectively invigorated domestic demand and yielded remarkable outcomes from consumer goods trade-in programs, the automotive industry's profitability improvements have markedly lagged behind those of other consumer goods sectors.

As national efforts to combat excessive competition intensify, the profit margins within the non-ferrous metal mining and processing industry have surged past 30%. Simultaneously, the upstream steel sector has witnessed substantial profit growth, and the battery industry continues to reap significant profits. Coupled with the high costs associated with intelligent driving technologies, these factors have collectively contributed to a contraction in the automotive industry's profits. In contrast, enterprises positioned upstream in the industrial chain have demonstrated robust profitability.