Around 90% of Chinese carmakers are losing money – Chery boss

Chery International president Zhang Guibing says ‘around’ 90% of Chinese automakers are losing money and warns rising development costs could pose a threat to the survival of some companies.

According to Chery’s international boss, Zhang Guibing, the rise in research and development (R&D) costs could force some Chinese automakers to disappear in the future. Guibing, who is also the Executive Vice President of Chery Auto, spoke to several Australian media outlets at the company’s headquarters in Wuhu about his concerns for struggling brands. As reported by CarExpert, Guibing said approximately 90% of Chinese carmakers are losing money, citing the increasing cost of R&D to remain competitive could prove too much for companies already facing financial strain.

“Most Chinese car manufacturers are listed on the stock market and release financial reports. Looking at those reports, I think most of them, maybe around 90% are losing money,” said Guibing. “Too many companies, surely later will die, will disappear.” He added, “Because now the new technology, before maybe it’s like a mechanical side, now it’s too many new technology developments. So the investment is much higher than before. So one side, more and more companies lost money, but [on the] other side, now the investment [is] getting more and more high.”

The market seems to support this narrative, with a report by AlixPartners stating that “7 of [the] current 30 Chinese NEV [new-energy vehicle] OEMs will break even by 2030; Industry consolidation to accelerate as weaker ones exit or become acquired”. This presents an opportunity for brand’s like Chery, who remain profitable in the face of these challenges. The Wuhu manufacturer placed seventh among the best-selling car brands in South Africa in September 2026.

With more sub-brands planned for export, this could further alleviate some looming R&D costs Guibing fears may impede on a future in the industry. He concluded, “But I think now even for me, I couldn’t understand what will be tomorrow’s car, the day after tomorrow’s car.”

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