Chinese Automakers: Pioneering Technology, But Plunging Domestic Sales & Profits
Japanese Automakers--Except Toyota--Suffer Declining/Soft Sales and Financial Stress
Source: Google, citing BYD’s quarterly reports
Key Points:
Chinese automakers are the first in the world to put three pivotal pioneering technologies into Electric Vehicle being sold this year: 1) charging an EV in only 5 minutes; 2) solid-state batteries that are far more efficient than today’s liquid batteries; and 3) sodium-ion batteries, which eliminate the need for “critical minerals” like lithium (dominated by China) and cobalt
Meanwhile, Chinese automaker profits plunge due to price war in a market with excess capacity and soft domestic sales beginning in late 2025
Will China allow the necessary shakeout?
Other than Toyota, Japan’s automakers are suffering dismal earnings—and Nissan a net loss—due to Trump’s tariffs and their loss of market share to Chinese challengers
While Toyota is making profits by the truckful, Nissan shows big losses, Honda’s car division shows operating losses and the rest have small profits
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