--- title: "China Automakers Warn of Profit Squeeze as Raw Material Costs Rise" type: "News" locale: "en" url: "https://longbridge.com/en/news/293052282.md" description: "Six major Chinese automakers warned of profit squeezes in their H1 2026 earnings alerts, citing rising raw material and component costs as primary drivers. GAC Group, Seres, BAIC BluePark, and JAC Motors forecast losses, while Changan and Great Wall Motor expect significant profit declines. Surging prices for chips, metals, and lithium carbonate add thousands of yuan per vehicle, compounded by weaker sales and exchange-rate fluctuations." datetime: "2026-07-17T14:37:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293052282.md) - [en](https://longbridge.com/en/news/293052282.md) - [zh-HK](https://longbridge.com/zh-HK/news/293052282.md) generator: "portal-rs" --- # China Automakers Warn of Profit Squeeze as Raw Material Costs Rise Six major automakers in China issued first-half 2026 earnings alerts showing that rising raw material and parts costs are eroding profits, according to Jiemian News. GAC Group expects a net loss attributable to shareholders of 4.06 billion yuan to 4.57 billion yuan, while Changan Automobile forecast profit to fall 57.66% to 67.7% to 740 million yuan to 970 million yuan. Seres expects to swing from a profit a year earlier to a loss of 1.5 billion yuan to 1.8 billion yuan, and BAIC BluePark forecast a loss of 1.77 billion yuan to 1.97 billion yuan. JAC Motors said it expects a loss of about 740 million yuan, while Great Wall Motor also forecast lower first-half net profit. The companies cited higher raw material and component costs, exchange-rate moves, weaker sales, and investment in overseas and self-owned brands as factors behind the weaker results. Jiemian News reported that the increase in storage chip, industrial metal and battery-grade lithium carbonate prices may add at least 4,000 yuan to 7,000 yuan per vehicle, while a luxury-car executive said this year’s raw material increases lifted that company's per-vehicle material cost by about 10,000 yuan. The article said mature storage chip prices have already risen more than 100% in some contracts in the first half, with another 60% to 70% increase possible in the second half. It also noted that GM and Ford signed long-term deals with Micron in July to secure supply, while Nio partnered with and became a strategic investor in Xinchuang Technology for automotive-grade chips. China Passenger Car Association data showed mainland narrow-passenger retail sales fell 20.2% year on year to 8.701 million in the first half of 2026, including 4.704 million new-energy passenger vehicle sales and 3.997 million fuel vehicle sales. ### Related Stocks - [600418.CN](https://longbridge.com/en/quote/600418.CN.md) - [02333.HK](https://longbridge.com/en/quote/02333.HK.md) - [601127.CN](https://longbridge.com/en/quote/601127.CN.md) - [601633.CN](https://longbridge.com/en/quote/601633.CN.md) - [02238.HK](https://longbridge.com/en/quote/02238.HK.md) - [601238.CN](https://longbridge.com/en/quote/601238.CN.md) - [000625.CN](https://longbridge.com/en/quote/000625.CN.md) - [600733.CN](https://longbridge.com/en/quote/600733.CN.md) - [200625.CN](https://longbridge.com/en/quote/200625.CN.md) - [09927.HK](https://longbridge.com/en/quote/09927.HK.md) - [MU.US](https://longbridge.com/en/quote/MU.US.md) - [GM.US](https://longbridge.com/en/quote/GM.US.md) - [F.US](https://longbridge.com/en/quote/F.US.md) - [NIO.US](https://longbridge.com/en/quote/NIO.US.md) - [09866.HK](https://longbridge.com/en/quote/09866.HK.md) - [82333.HK](https://longbridge.com/en/quote/82333.HK.md) - [F-B.US](https://longbridge.com/en/quote/F-B.US.md) - [F-C.US](https://longbridge.com/en/quote/F-C.US.md) - [F-D.US](https://longbridge.com/en/quote/F-D.US.md) - [NIO.SG](https://longbridge.com/en/quote/NIO.SG.md) ## Related News & Research - [SERES Swings to Interim Loss of RMB1.717 Billion, No Dividend Declared](https://longbridge.com/en/news/296418381.md) - [Great Wall Motor files HKEX next-day return, issues 435 A shares via convertible bond conversion](https://longbridge.com/en/news/296597189.md) - [Great Wall Motor keeps Changan convertible bond conversion price unchanged, rejects downward reset](https://longbridge.com/en/news/295769629.md) - [GAC’s Indonesia EV Strategy Puts Customer Feedback at the Center of Development](https://longbridge.com/en/news/296001896.md) - [After gaining EV sway, Chinese carmakers eye full hybrid market](https://longbridge.com/en/news/296736607.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**