Chery Executive Warns Financial Pressure Could Reshape China’s Carmaker Field

Zhang Guibing estimates that roughly nine in ten Chinese automakers are losing money, as rising technology-development costs put weaker companies at risk.

Source: CAR Magazine South Africa2026-10-261 min read

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Chery International president and Chery Auto executive vice president Zhang Guibing has warned that mounting development costs could push some Chinese automakers out of the industry. Speaking to Australian media at Chery’s headquarters in Wuhu, he estimated that around 90% of Chinese carmakers are losing money, basing his view on companies’ published financial reports.

Zhang said the burden of research and development has grown as automakers invest in a wider range of new technologies, beyond traditional mechanical engineering. He cautioned that some companies may eventually disappear as losses increase and investment requirements rise. He also acknowledged uncertainty about how cars will develop in the years ahead.

The article cites an AlixPartners report that projects only seven of 30 current Chinese new-energy vehicle makers will reach break-even by 2030, with consolidation expected as weaker firms leave the market or are acquired. Chery is presented as an exception to the financial pressure: the Wuhu-based company remains profitable and ranked seventh among South Africa’s best-selling car brands in September 2026. The company is also planning to export more sub-brands, which could help spread development costs across a wider business.

This is an original summary compiled and translated from the source below, not a direct translation of it.

Source: CAR Magazine South Africa →How we compile the news →

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