On May 4, 2026, reports surfaced indicating that the charging pile industry is grappling with significant profitability hurdles, with a staggering 80%+ of operators finding themselves in the red. After accounting for expenses such as equipment depreciation and site leasing, even leading firms are left with a slim net profit margin of just 4 cents per kilowatt-hour. By the end of February 2026, the nationwide tally of charging facilities had surged past 21.01 million, marking a 47.8% year-on-year surge. Yet, in certain locales, the abundance of charging piles relative to vehicles has triggered a downturn in the utilization rates of public charging stations, with outdated, low-capacity units languishing at less than 10% usage.

The cross-industry expansion by automakers and battery manufacturers has further tightened the noose around third-party operators, shrinking their market share. The swift pace of technological advancements has also upped the ante on investment risks for operators, as early-installed, low-capacity piles quickly become obsolete before they can recoup their initial outlay. The ongoing price skirmish continues to chip away at profit margins. Charging service fees, which constitute the bulk of operators' revenue, make it difficult for them to hike prices due to users' price sensitivity and weak brand allegiance, compelling them to resort to low-price strategies to lure customers.

Simultaneously, the dwindling costs of mass-producing equipment, coupled with the gradual withdrawal of charging subsidies and escalating rent and operational expenses, render sustained low-price operations in the industry untenable, trapping the majority of operators in a cycle of losses.