China’s automotive sector faces mounting profit pressure despite growing sales volume, with the average profit margin dropping to a near five-year low of 4.1% in 2025, according to the China Automobile Dealers Association. Dong-Shu Cui, secretary-general of the China Passenger Car Association, revealed that total industry profits reached about CNY461 billion (US$66.3 billion) in 2025, up only 0.6% year-over-year.