Visitors inspect Aito M8 models in a shopping mall in Haidian district, Beijing, in February. WANG YUCHEN/CHINA DAILY
The rising prices of automotive-grade memory chips are adding pressure on Chinese automakers who face softer sales and narrower margins, prompting them to strengthen cost control and supply chain coordination, industry experts said.
The broader rollout of intelligent vehicle functions has increased onboard memory requirements across cockpit and driver-assistance systems, leaving automakers more exposed to volatility in memory chip prices.
The cost pressure comes as China's passenger vehicle market is under strain. Passenger vehicle retail sales reached 7.11 million units in the first five months of 2026, down 19 percent year-on-year. Meanwhile, auto industry profits fell 20 percent to 144 billion yuan ($19.9 billion), according to data from the China Passenger Car Association. The industry's profit margin fell to 3.4 percent, the lowest level for the same period in five years.
The strain has been amplified by a sharp rise in automotive-grade memory chip prices. Chinese news reports said prices of automotive-grade memory chips rose by about 180 percent from March to June.
