The combined profits of China's three most profitable automakers can barely catch up with that of CATL.

The semi - annual reports of the automotive industry have all been released, revealing the most realistic situation of the automotive industry this year.

In the first half of this year, the sales of mainstream automakers soared collectively, and their revenues also reached new heights. However, the overall profit showed no sign of improvement:

According to statistics, 14 mainstream automakers sold a total of 11.02 million vehicles in the first half of the year, a year - on - year increase of 14.7%; their total revenue was 1.39 trillion yuan, a year - on - year increase of 12.1%.

However, in terms of net profit, each automaker had either profits or losses. Most of them experienced a decline in profit. In the first half of the year, they made a total of 25.573 billion yuan, a year - on - year decrease of 21.0%.

More straightforwardly, the combined profits of the three most profitable automakers in the automotive industry - BYD, Great Wall, and Geely - are just on par with those of CATL.

After all the hard work of so many automakers, is it really just a joke that they are working for "King Ning"?

Semi - annual reports released: The combined profits of the three most profitable automakers catch up with those of "King Ning"

As the "Golden September" approaches, the financial reports of mainstream automakers for the first half of this year have all been released.

Among the listed mainstream automakers, Intelligence Vehicle Reference has counted 14 automakers/brands mainly focusing on passenger cars. It is found that from an overall industry perspective, the trend in the first half of the year was rather subtle. (Note: ZEEKR is included in the Geely Group, and Chery has not been officially listed yet, so neither is presented separately.)

In terms of sales, almost all mainstream automakers achieved varying degrees of growth.

Among independent and traditional brands, BYD and SAIC still led the way. Their sales in the first half of the year both exceeded the 2 million mark, with year - on - year increases of 33% and 12.4% respectively.

Geely advanced from the fifth place last year to the top three. Its sales in the first half of the year were 1.4092 million vehicles, and the growth rate reached 47%, the highest among independent brands.

Changan, BAIC, and Great Wall Motors also achieved sales growth in the first half of the year, with sales of 1.3553 million, 0.817 million, and 0.5698 million vehicles respectively.

Among new - force brands, Leapmotor was undoubtedly the biggest dark horse this year. It delivered a cumulative total of 0.2217 million vehicles in the first half of the year, becoming the sales champion among new - force brands in the first half of the year, with a year - on - year increase of 155.7%.

The growth rates of XPeng and Xiaomi Auto were also quite astonishing. Their sales in the first half of the year increased by 279% and 134.20% year - on - year respectively, with sales of 0.1972 million and 0.1572 million vehicles respectively.

The sales of NIO and Li Auto in the first half of the year were 0.1142 million and 0.2039 million vehicles respectively, with year - on - year increases of 30.60% and 7.90% respectively.

In the first half of this year, the 14 automakers/brands delivered a total of about 11.02 million new vehicles, a 14.7% increase compared with 9.608 million vehicles in the same period last year.

The increase in sales also drove up the overall revenue level of automakers.

The top three automakers in terms of revenue remained the same as last year, still being BYD, SAIC, and Geely.

The revenues of these three automakers in the first half of the year were 371.28 billion yuan, 299.588 billion yuan, and 150.285 billion yuan respectively, with year - on - year growth rates of 23.30%, 5.20%, and 26.50% respectively.

The three automakers/brands with the highest revenue growth rates belong to the new - force Xiaomi Auto, Leapmotor, and XPeng.

Xiaomi Auto had the fastest revenue growth. Its automotive revenue in the first half of the year was 20.6 billion yuan, a staggering year - on - year increase of 232.30%. The revenues of XPeng and Leapmotor were 34.08 billion yuan and 24.25 billion yuan respectively, with year - on - year increases of 132.50% and 174.30% respectively.

The cumulative revenue of the 14 automakers/brands in the first half of the year was 1.39 trillion yuan, a 12.1% increase compared with 1.24 trillion yuan in the same period last year.

However, different from the soaring sales and revenues, the profits of most automakers declined significantly.

Taking net profit attributable to the parent company as a reference indicator, among the 14 automakers/brands, only BYD, Seres, and Li Auto saw an increase in net profit. Leapmotor turned a profit in the first half of the year, and the net losses of XPeng and Xiaomi Auto were significantly reduced.

The net profits or net losses of most other automakers declined to varying degrees.

The total net profit of the 14 automakers in the first half of the year was about 25.573 billion yuan, a full 21.0% decrease compared with 32.386 billion yuan in the same period last year.

Among them, the three most profitable automakers - BYD, Geely, and Great Wall - had net profits attributable to the parent company of 15.51 billion, 9.29 billion, and 6.337 billion yuan respectively; the combined net profit of the three giants reached 31.137 billion yuan.

However, looking at the entire automotive industry chain, the combined profits of the three most profitable automakers have just caught up with those of CATL -

CATL's net profit in the first half of the year was 30.49 billion yuan, equivalent to an income of 168 million yuan per day.

Assuming that the cost of building a battery - swapping station is 3 million yuan, the money CATL earns in one day is enough to build 56 battery - swapping stations.

Comparing market values, the current market values of BYD (955.8 billion), Geely (169.8 billion), and Great Wall (149.6 billion) are about 1.28 trillion yuan, still less than CATL's current 1.75 trillion yuan.

Is it really true that selling cars is not as profitable as selling batteries? Are automakers ultimately working for "King Ning"?

The truth may not be that simple.

Is selling cars really less profitable than selling batteries?

Behind this gap is not simply that "automakers are not as good at making money as upstream battery giants".

The primary core factor is that their profit models are completely different.

CATL's profits mainly come from its technological barriers and leading position in the industry.

Nowadays, the trend of new energy is irresistible, and the penetration rate is rising steadily. Batteries are inevitably an important topic. Many automakers that do not have the energy to produce batteries on their own need to choose suppliers if they want batteries.

CATL is an energy + technology company. The technology and products it has gradually accumulated over the years have built up unique industry advantages and a good reputation, making it the first choice for battery supply for many mainstream automakers.

This has also enabled CATL to become the world's No. 1 supplier of power batteries and a well - deserved industry leader.

Therefore, CATL not only has economies of scale but also strong bargaining power, ensuring that it can still maintain a stable gross profit level under raw material fluctuations and market competition.

In contrast, automakers are completely different.

Car - making is a capital - intensive business. R & D, production, marketing, and channels all require a lot of money. The formation of automakers' profits depends more on scale, brand, and cost control.

Moreover, whenever new forces enter an industry, before the era changes and the pattern stabilizes, there will always be turmoil and competition.

In a highly competitive market, consumers have different preferences, and it is difficult to maintain a stable profit margin. It is even more impossible for one company to dominate the market.

Just as the new - energy era is fully arriving, the automotive industry is experiencing unprecedented competition. Although there has been continuous reshuffling in the past few years, there are still many new entrants.

New - force brands, joint - venture brands, independent brands, and cross - border players all hope to gain an advantage in the price war in almost every niche market.

In such a situation, automakers first focus on sales volume rather than profit. Because scale is the prerequisite for survival. Only by expanding the scale can they spread the cost and survive the competition cycle.

In other words, the collective compression of automakers' profits now is not due to their lack of profitability but because the car - selling industry is still in a "bloody battle period", sacrificing profits for market share and economies of scale.

Of course, all automakers know that "trading price for volume" is like drinking poison to quench thirst, but no one can escape the involution.

It's hard to make money in the automotive industry, except for CATL.

This article is from the WeChat public account "Intelligence Vehicle Reference" (ID: AI4Auto), author: Jessica. It is published by 36Kr with permission.