China’s top-earning automakers: BYD leads, Geely second, four brands surpass Tesla’s gross margin
Based on the latest data for Q1 2025, BYD stands out as the Chinese passenger car manufacturer with the highest single-quarter net profit, reaching 9.155 billion yuan (1.28 billion USD). It achieved a single-quarter gross profit margin of 20.7%, surpassing Tesla’s 16.3% for the same period.
Financial reports show that BYD’s single-quarter R&D expenditure reached 14.223 billion yuan (1.98 billion USD), exceeding its net profit.
Coming in second on the list is Geely, with a single-quarter net profit of 5.672 billion yuan (791 million USD), second to BYD. Its gross profit margin stands at 15.78%, roughly on par with Tesla. Geely’s single-quarter R&D expenditure was 3.328 billion yuan (464 million USD).
SAIC Group takes the third spot, achieving a single-quarter net profit of 3.023 billion yuan (422 million USD). SAIC Group’s gross profit margin is 8.13%. Its overall R&D expenditure also surpassed its net profit, reaching 3.881 billion yuan (541 million USD).
Here is a summary of the profitability and R&D spending of the top Chinese passenger car manufacturers (sorted by net profit):
| Rank | Brand | Gross profit margin | Net profit / R&D expenditure (billion yuan) |
|---|---|---|---|
| 01 | BYD | 20.7% | Net Profit 9.155 / R&D Expenditure 14.223 |
| 02 | Geely | 15.78% | Net Profit 5.672 / R&D Expenditure 3.328 |
| 03 | SAIC | 8.13% | Net Profit 3.023 / R&D Expenditure 3.881 |
| 04 | GWM | 17.84% | Net Profit 1.751 / R&D Expenditure 1.906 |
| 05 | Changan | 13.86% | Net Profit 1.353 / R&D Expenditure 1.501 |
| 06 | BAIC | 9.9% | Net Profit 0.929 / R&D Expenditure 0.082 |
| 07 | Seres | 27.62% | Net Profit 0.748 / R&D Expenditure 1.051 |
| 08 | Li Auto | 20.51% | Net Profit 0.647 / R&D Expenditure 2.51 |
| 09 | Leapmotor | 14.9% | Net Profit -0.13 / R&D Expenditure 0.8 |
| 10 | Xpeng | 15.56% | Net Profit -0.66 / R&D Expenditure 1.98 |
The brands ranked fourth to tenth are Great Wall Motors, Changan, BAIC, Seres, Li Auto, Leapmotor, and Xpeng.
Seres’s gross profit margin reached 27.62%. The success of the Aito M9 model has allowed Seres to be the first to open up the high-end market for Chinese brands.
New energy vehicle brands like Li Auto, Leapmotor, and Xpeng have also shown progress, with Leapmotor and Xpeng being just a step away from achieving profitability.
Editor’s comment
New energy vehicle technology is still in a phase of rapid development, making substantial R&D investment indispensable for many automakers. In the table above, only Geely and BAIC’s quarterly R&D expenditures were less than their net profits. While Geely’s expenditure remains a significant figure, BAIC’s R&D spending appears negligible compared to that of other companies. This raises concerns about the future prospects of the automaker responsible for brands like Stelato and Arcfox.
Source: Autohome
