A comprehensive review of semi-annual reports from major traditional listed automakers reveals that the domestic auto market has fully transitioned into a phase of intense stock competition, with industry-wide profitability facing significant headwinds. In stark contrast, overseas markets have demonstrated sustained robust demand, solidifying their role as the primary engine for automaker growth and stability.

A comparative analysis of the core financial data from the first half of 2026 across these eight companies shows pronounced divergence in revenue and profit landscapes, with clear distinctions between tiers. In terms of revenue, Byd Company Limited (01211.HK) led the pack with RMB 344.815 billion, while Saic Motor Corporation Limited (600104.SH) secured the second spot with RMB 294.987 billion. GEELY AUTO (00175.HK) ranked third, posting revenues of RMB 173.6 billion.

On the profitability front, Byd Company Limited led the industry with a net profit of RMB 12.325 billion, making it the only automaker to exceed the RMB 10 billion profit threshold. CHERY AUTO (09973.HK) and Saic Motor Corporation Limited followed with net profits of RMB 8.567 billion and RMB 5.152 billion, respectively. However, GAC GROUP (02238.HK) and SERES (09927.HK) both reported losses for the half-year period. Across the board, year-on-year net profit declines have become the industry standard, reflecting the pervasive margin compression.

As the domestic market saturates, the incremental growth dividends have vanished, and the first half of 2026 saw most automakers experience significant declines in net profit and gross margins even when stabilizing sales and revenue, leading to a widespread phenomenon of volume increasing without proportional profit growth. The profitability of leading independent brands has weakened across the board. Industry leader Byd Company Limited maintained its top profit position by scale, but intense domestic competition severely squeezed its overall vehicle profit margins, resulting in a 20.5% year-on-year drop in attributable net profit to RMB 12.325 billion for the first half of 2026.

Following closely, Saic Motor Corporation Limited leveraged its massive group scale to hold the second-highest industry revenue and demonstrated the strongest profit resilience among state-owned automakers. However, it could not escape the sector-wide profit squeeze, posting a net profit of RMB 5.152 billion, down 14.38% year-on-year. GEELY AUTO, ranking third in revenue, saw its profit contraction less severe than the industry average. While its revenue grew 15% year-on-year, leading major automakers in growth pace, its net profit of RMB 9.091 billion dipped 2%.

Both CHERY AUTO and GWMOTOR (02333.HK) are classic examples of revenue growth failing to translate into profit gains. CHERY AUTO achieved RMB 143.28 billion in revenue, a modest 1.2% increase, but its attributable net profit fell 11.7% to RMB 8.567 billion. In contrast, GWMOTOR boasted impressive revenue growth of 10.58% to RMB 102.101 billion, yet suffered a severe profit slump, with net profit plummeting 61.11% to RMB 2.465 billion.

Intensifying competition further amplified operational pressure on companies already performing poorly. Chongqing Changan Automobile Company Limited (000625.SZ) fell into a predicament of declining both revenue and profit, with first-half revenue down 9.71% to RMB 65.634 billion and attributable net profit dropping a sharp 64.32% to RMB 817 million. While many automakers faced shrinking profits, some exited the profitability cycle altogether. SERES swung to a loss, with revenue declining 7.87% to RMB 57.493 billion and a net loss of RMB 1.717 billion, a stark reversal from the RMB 2.941 billion net profit in the year-ago period.

GAC GROUP joined the loss-making camp, posting revenue of RMB 46.121 billion (up 9.38%) but a net loss of RMB 4.467 billion, which expanded by 75.98%, making it the mainstream listed automaker with the largest half-year loss in the industry. With domestic growth plateauing and profitability under constant pressure, overseas exports have become the most certain growth highlight for domestic automakers in the first half of 2026. Export sales volumes and overseas revenue surged dramatically across all eight traditional automakers, effectively offsetting the performance pressures from the domestic market.

According to semi-annual reports, Byd Company Limited sold 789,400 vehicles overseas in the first half of 2026, a year-on-year surge of 70.65%, with overseas sales accounting for 43.8% of its total sales. Capitalizing on explosive overseas growth, the company's overseas operating revenue reached RMB 181.3 billion, surpassing 50% of total revenue, marking the first time overseas revenue outpaced domestic revenue. This establishes the overseas business as the cornerstone of its performance. CHERY AUTO and GEELY AUTO led the industry in export growth. CHERY AUTO sold 943,800 units overseas in the first half, a 71.5% increase, with overseas sales exceeding 70% of its total volume. Its overseas revenue grew 51% to RMB 98.968 billion, raising its revenue share from 46.3% to 69.1%, making it the mainstream automaker with the highest overseas penetration, as its international business now supports nearly 70% of its total revenue.

GEELY AUTO accelerated its global expansion significantly, with overseas sales surging 158% year-on-year to 474,200 units in the first half, already surpassing its total full-year export volume for 2025. Other automakers including Saic Motor Corporation Limited, GWMOTOR, GAC GROUP, and Chongqing Changan Automobile Company Limited also steadily accelerated their overseas efforts. GWMOTOR achieved a record-high overseas sales volume in the first half, with overseas sales surpassing domestic sales for the first time. GAC GROUP saw its independent brand exports double, while Saic Motor Corporation Limited continued to deliver stable export growth via its mature overseas production bases and distribution networks. Currently, only SERES remains focused on the domestic market, with its overseas business scale too small to generate meaningful incremental performance.

It is important to note that domestic automakers' overseas expansion is generally in a phase of high growth coupled with high investment. Despite significant increases in overseas sales and revenue, the additional costs associated with cross-border tariffs, overseas channel development, localized operations, and currency fluctuations mean that overseas business has yet to proportionally drive profit growth. Overall, the automotive landscape in the first half of 2026 is marked by significant divergence: profitability challenges intensify in the domestic stock market, while overseas markets open up new growth avenues. Going forward, scale alone will no longer define a company's competitive edge. The keys to long-term competitiveness will be refined domestic operational efficiency and deep localization overseas.