CATL Surpasses Major Automakers in Profitability

On July 29 of this year, the prestigious Fortune Global 500 list was published, clearly demonstrating the financial situation in the global automotive and related industries. The list includes China's ten leading automobile and spare parts manufacturers, among which is the battery giant CATL. According to ixbt.com, the profitability indicator of this enterprise was found to be several times higher than that of a number of auto giants. This is reported by Ixbt.com .

According to statistical data, CATL became the clear leader among the industry representatives on this list with a profitability level of 17%. This figure is more than 11 times higher than the average profitability of the eight major automakers included in the list. Additionally, CATL's net profit in 2025 amounted to 10 billion dollars.

Experts note that this financial result is extremely substantial, equaling the total annual net profit of four major automotive companies: BYD, Chery, FAW, and SAIC. This has shown that in the modern transport industry, manufacturing batteries and energy cells—the most expensive parts of a vehicle—is much more profitable than assembling the car itself.

Financial Pressure and Changes in the Industry

In the first half of 2026, CATL managed to increase its revenue and overall profit volume. However, during this exact same period, many traditional automakers faced serious operational pressures and difficulties. In particular, it was observed that the total profit of the country's automotive industry decreased by 20% compared to the same period last year.

Against the backdrop of general depression in the sector, the profitability of the automotive sector turned out to be even lower than the average of related industries. Nevertheless, some companies are adapting to market demands and recording good results. For example, Chery entered this prestigious list for the first time as an independent company participating in stock exchange trading.

Performance of the Leaders

The level of financial stability among automakers varies. Specifically:

• Chery leads the automotive segment with a profitability of 6.3%.
• BYD takes second place with a figure of 4.1%.
• At the same time, it was noted that BYD's revenue in foreign markets accounted for nearly 40% of its total income, and its sales of new energy vehicles maintained first place in global rankings.

Overall, the Fortune Global 500 data clearly confirms that in the era of electric vehicles, the production of technological components, particularly energy storage batteries, has become a much more profitable and stable business model than the car assembly business.