China's largest power battery provider, CATL, showcases its products at the 2026 Auto China Show in Beijing in April. WANG YUCHEN/CHINA DAILY
Automakers in China are widening their battery supplier pools and taking a more active role in setting battery specifications to manage costs and reduce supply risks as profit margins across the auto industry remain under pressure.
China's automotive manufacturing sector generated 5.19 trillion yuan ($767 billion) in revenue in the first half of 2026, up 1.8 percent year-on-year, according to the National Bureau of Statistics. Operating costs rose 2.8 percent over the same period, outpacing revenue growth, while total profits fell 19.5 percent to 195.4 billion yuan.
The figures cover the broader automotive manufacturing sector, including automakers and auto parts producers. Cui Dongshu, secretary-general of the China Passenger Car Association, said the sector's profit margin stood at 3.8 percent in the first half of 2026.
Battery procurement is one area where automakers are seeking tighter cost control. Industry estimates suggest battery packs account for 30 to 40 percent of an electric vehicle's component and material costs, depending on the model and configuration.
