China's Changan vehicle profits fall to 68 yuan per car

China Changan Automobile Group's financial reports for the first half of 2026 reveal a stark disconnect between overall corporate profit and the actual profitability of its vehicle sales. While the group reported a total net profit of 817 million yuan, the core automotive business contributed only about 80 million yuan to that figure.

Photo: Wikipedia by JustAnotherCarDesigner, https://creativecommons.org/licenses/by-sa/4.0/

Changan Raeton Plus

Analysis by Zaker Finance indicates that the majority of the group's bottom line was driven by government subsidies and investments rather than car sales. When isolated, the automotive segment's profit per vehicle dropped to approximately 68 yuan (about 866 rubles) for the first six months of 2026. This is a massive decline from the first half of 2024, when the group earned 2,120 yuan per car.

To put this in market context, Changan's per-vehicle profit of 68 yuan trails significantly behind its competitors. According to Zaker Finance, Geely Automobile earns roughly 6,400 yuan per car, BYD earns 3,600 yuan, GWM earns 2,400 yuan, and SAIC earns 1,700 yuan.

The collapse in unit profitability stems from several internal pressures:

• Internal Combustion Engine (ICE) Decline: Sales of gasoline-powered vehicles fell 25% year-on-year to 740,000 units.
• Loss-Making EV Brands: New energy brands Deepal and Avatr remain in the red. Deepal ended 2025 with a loss of 899 million yuan, while Avatr reported a loss of 1.16 billion yuan.
• Margin Pressure: While the Changan Nevo brand is increasing volume, it is categorized as low-margin due to aggressive price competition in the Chinese market.

Currently, the group's strongest performance is found in export markets, including Russia, Thailand, Brazil, and the Middle East. Foreign sales grew by 51.9% year-on-year, reaching 455,000 units and accounting for 38% of total sales. These markets provide a gross margin of 20.13%, nearly double the 11.67% margin earned from sales within China.

Despite the export growth, total sales volume for the first half of 2026 fell 11.8% compared to the previous year, totaling 1,195,600 vehicles. To stabilize the financial situation, Changan plans to integrate Deepal and Avatr by 2026 to reduce expenses by 20-30%. Additionally, Avatr is pursuing an IPO in Hong Kong to secure further funding.