On January 27, news emerged from the Passenger Car Market Information Joint Conference Branch of the China Automobile Dealers Association. It revealed that in 2025, the automotive industry witnessed a year - on - year increase in revenue. However, the growth rate of costs outpaced that of revenue. This led to a mere marginal rise in annual profits, with the industry's profit margin plummeting to 4.1%. In December alone, the profit margin further dwindled to 1.8%, marking a substantial decline both on a month - on - month and year - on - year basis.

Despite Chinese automobiles achieving record - breaking production and sales volumes in 2025, the problem of 'profit - making difficulties' within the automotive industry chain has become more and more pronounced. Cui Dongshu, the Secretary - General of the Passenger Car Market Information Joint Conference Branch, emphasized that the automotive industry's endeavors in destocking and optimizing payment terms have surpassed the overall performance of industrial enterprises.

In 2025, various regions took an active approach in promoting the implementation of the 'two new' policies, effectively unleashing the potential of domestic demand. The policy of trading in old consumer goods for new ones has delivered outstanding results. Nevertheless, the improvement in the automotive industry's profitability has fallen far short compared to that of other consumer goods.