BYD, Xiaomi, Leapmotor China's only three profitable EV makers

Only three Chinese electric vehicle manufacturers—BYD, Xiaomi, and Leapmotor—are currently profitable, while no more than four additional companies are expected to break even by 2030, according to Carscoops.

The report says most weaker EV makers are likely to either go bankrupt or be acquired by larger competitors as pressure on profitability continues to mount.

The challenging earnings environment is also pushing automakers to expand more aggressively into overseas markets, while domestic demand for electric vehicles continues to weaken.

Preliminary data from the China Passenger Car Association showed that nationwide sales of battery electric vehicles and plug-in hybrids totalled 1.04 million units in June, down 7% from the same month a year earlier.

Sales for the first half of 2026 fell 13% year-on-year to 4.73 million vehicles.

Consumer demand has been dampened by economic uncertainty, expectations of further price declines, and the gradual withdrawal of government support.

Earlier this year, Beijing revised its subsidy program and began phasing out tax incentives for electric vehicle manufacturers.

Annual vehicle tax exemptions for all electric vehicles are due to expire on Jan. 1, 2027.

With the domestic market slowing, exports are becoming the main driver of growth for China's automotive industry.

Analysts forecast that Chinese brands could export around 10 million vehicles by the end of 2026, a 41% increase from the previous year.

By Bakhtiyar Abbasov