Chery International president Zhang Guibing told Australian media in China that he estimates roughly 90 per cent of Chinese automakers are losing money. He warned that some companies will leave the market as competition intensifies, and said the expanding range of technologies in new vehicles is driving research and development costs higher than before.
A June 2026 AlixPartners outlook found that only three of 30 Chinese manufacturers focused on new-energy vehicles were profitable for the full year in 2025. The category includes battery EVs, extended-range EVs and plug-in hybrids, so the study covers a narrower group than Zhang’s estimate. AlixPartners expects seven of the 30 to reach break-even by 2030. The report also highlighted excess capacity and underused factories as financial challenges. China produced about 35 million vehicles last year, against estimated annual capacity of around 55 million.
Chery itself reported first-half 2026 net profit of 9.02 billion yuan (about A$1.92 billion), down 9 per cent year on year. R&D spending rose 28.3 per cent to 6.67 billion yuan. Overseas customers generated 69.1 per cent of revenue, up from 46.3 per cent a year earlier.
The company also recorded 4,205 Australian deliveries in September, while Omoda Jaecoo delivered 2,310. Chery’s Australian lineup is set to grow, with several additional brands due from 2027 and Lepas expected before the end of 2026.