Most Chinese car makers lose money, says Chery boss

Summarised from 2 outlets · Updated 23 Oct, 05:50 · Archive

Chery's international president estimates around 90 per cent of Chinese automakers are losing money.

Chery International president Zhang Guibing estimates around 90 per cent of Chinese automakers are losing money, warning that rising development costs will force more companies to disappear. Speaking to Australian media in China, he said most listed manufacturers' financial reports showed losses. 'Too many companies, surely later will die, will disappear,' he said.

Mr Zhang highlighted the burden of research and development spending required to keep vehicles competitive. He noted that investment in new technology development has increased significantly compared to previous years, when automotive innovation focused primarily on mechanical improvements.

Independent research supports widespread losses in parts of China's automotive sector. Consultancy AlixPartners reported in its June 2026 Global Automotive Outlook that only three of 30 Chinese manufacturers focused on 'new-energy vehicles'—a category encompassing electric vehicles, extended-range electric vehicles and plug-in hybrids—achieved full-year profitability in 2025. This narrower category suggests losses are particularly acute among manufacturers developing advanced powertrains.

How it is being reported

• Chery boss says around 90 per cent of Chinese automakers lose moneyChery’s international boss estimates around 90 per cent of Chinese automakers are losing money, and warns more companies will disappear as development costs rise.Perth Now · 23 Oct, 05:23
• Chery boss says around 90 per cent of Chinese automakers lose moneyChery’s international boss estimates around 90 per cent of Chinese automakers are losing money, and warns more companies will disappear as development costs rise.The West Australian · 23 Oct, 05:23

In this story: Chery · Zhang Guibing · China · AlixPartners

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