Is SAIC Motor profitable in 2026?

SAIC Motor's FY2025 net profit rebounded to RMB 10.106 billion from just RMB 1.666 billion in FY2024, on revenue of RMB 656.24 billion, a net margin near 1.5 percent. Q1 2026 revenue was roughly flat year over year at RMB 140.42 billion, so profitability is recovering but thin.

Who is SAIC Motor's biggest competitor?

BYD is SAIC Motor's top rival, having overtaken it in 2024 to end SAIC's 18 year run as China's top selling automaker. SAIC still moved 4.507 million vehicles in 2025, but BYD's EV scale and EU export growth (more than doubling 2023-2025) keep outpacing SAIC.

Could AI replace SAIC Motor's own smart-driving technology?

SAIC's own IM AD system exists, but its Shangjie joint venture with Huawei runs the Qiankun ADS stack also used by five rival brands including Aito and Luxeed. This means SAIC's flagship AI-driving feature (launched on the H5 in September 2025) is licensed, not proprietary.

SAIC Motor (SSE: 600104) is majority owned by SAIC Group, historically around 62.69 percent, itself controlled by the Shanghai State-owned Assets Supervision and Administration Commission (SASAC). It has been publicly listed since 2011 but remains a state-controlled enterprise.

Is SAIC Motor still China's largest automaker?

By volume yes, SAIC sold 4.507 million vehicles in 2025 (+12.3 percent) and led H1 2026 with 2.045 million units, the only Chinese automaker above 2 million that half-year. But it lost the domestic sales crown to BYD in 2024 after 18 years on top.

How badly do EU tariffs hurt SAIC Motor?

SAIC faces a 35.3 percent EU countervailing duty on BEVs (about 45.3 percent total tariff), the highest rate among Chinese automakers, in force since October 2024. Its BEV imports into the EU nearly halved from 2023 to 2025, prompting a planned MG assembly plant in Galicia, Spain, announced June 2026.

Automotive companies · state-owned · China

SAIC Motor Corporation

saicmotor.com ↗

China's largest state-owned automaker, joint venture partner to VW and GM.

Losing its protection

Assessed 25 July 2026 · Evidence as of 25 July 2026

The structural protection is eroding.

On the recordSince 25 July 2026 · Checkable from January 2027 · Every call on the record Checkpoint: Shareholder no-sell pledge on SAIC stock expires

The call

SAIC is selling more cars and making more money again, but it no longer leads China's market and no longer owns the software that drives them.

SAIC Motor makes cars in China and sells them mostly at home. It used to be the biggest Chinese car company, but BYD took the top spot in 2024, and now Huawei controls the smart-driving software that SAIC cars use, which means SAIC is not the one making the key technology anymore. The company made money again in 2025 and sold more cars, but its profit margins are very thin (meaning it does not make much money per car), so it could lose ground fast if BYD keeps growing or if Huawei decides to work more closely with other carmakers instead of SAIC.

Why

AI pressure: Huawei (Qiankun ADS / HIMA alliance). Five brands including SAIC's IM Motors run Huawei's identical driving-software stack, leaving SAIC without its own AI differentiation. Could AI do the core job? Only partly.

Bigger players: BYD. BYD ended SAIC's 18-year run as China's top-selling automaker in 2024 and keeps widening its NEV lead. Could a giant copy it? Probably.

What protects it. State ownership plus VW and GM joint-venture distribution keep volume and cash flow alive even as margins thin to about 1.5%.

What would change this call

Whether IM Motors' in-house IM AD stack matches Huawei Qiankun ADS in reviews or sales by end of 2026. Shows if SAIC can compete on smart-driving software without depending on Huawei.
Whether a second Huawei HIMA-badged brand outsells SAIC's own-brand NEVs in China in 2026. Would show SAIC becoming more of a contract assembler for Huawei than an independent brand.
SAIC's monthly China sales rank versus BYD through 2026. Shows whether SAIC is closing or widening the gap with the new domestic leader.

Key numbers

FY2025 revenue RMB 656.24 billion, up 4.57% (2025)
Net profit rebounded to RMB 10.106B from RMB 1.666B (2025)
2025 NEV sales hit 1.643 million units, up 33% (2025)

Named risks

Razor-thin net margin near 1.5% in FY2025 despite profit rebound. Severity: high
EU tariff of ~45.3% total halved SAIC's BEV imports to Europe 2023-2025. Severity: high
Dealer-network cash-flow stress (Kunming/Zhuhai, July 2026) could be systemic. Severity: medium
Smart-driving software layer increasingly dependent on Huawei's shared ADS stack. Severity: medium
Domestic price war and BYD's continued share gains pressure volume and margin. Severity: high

Rivals, as read in July 2026

Rival	Direction	Evidence
BYD	losing to	Overtook SAIC as China's top selling automaker in 2024, ending its 18 year reign
Huawei (HIMA alliance)	contesting	SAIC's Shangjie JV runs Qiankun ADS also used by 5 rival brands, June 2026
JSW Group	losing to	SAIC cutting India JV stake from 49% to 39%, ceding control, May 2026
Geely and Chery	contesting	Domestic Big Four rivals with comparable NEV and export scale through 2026
Volkswagen and GM	gaining on	SAIC's JV partners also weakening in China, VW reported 64% profit drop tied to China slump

Questions people ask

Is SAIC Motor profitable in 2026?: SAIC Motor's FY2025 net profit rebounded to RMB 10.106 billion from just RMB 1.666 billion in FY2024, on revenue of RMB 656.24 billion, a net margin near 1.5 percent. Q1 2026 revenue was roughly flat year over year at RMB 140.42 billion, so profitability is recovering but thin.
Who is SAIC Motor's biggest competitor?: BYD is SAIC Motor's top rival, having overtaken it in 2024 to end SAIC's 18 year run as China's top selling automaker. SAIC still moved 4.507 million vehicles in 2025, but BYD's EV scale and EU export growth (more than doubling 2023-2025) keep outpacing SAIC.
Could AI replace SAIC Motor's own smart-driving technology?: SAIC's own IM AD system exists, but its Shangjie joint venture with Huawei runs the Qiankun ADS stack also used by five rival brands including Aito and Luxeed. This means SAIC's flagship AI-driving feature (launched on the H5 in September 2025) is licensed, not proprietary.
Who owns SAIC Motor?: SAIC Motor (SSE: 600104) is majority owned by SAIC Group, historically around 62.69 percent, itself controlled by the Shanghai State-owned Assets Supervision and Administration Commission (SASAC). It has been publicly listed since 2011 but remains a state-controlled enterprise.
Is SAIC Motor still China's largest automaker?: By volume yes, SAIC sold 4.507 million vehicles in 2025 (+12.3 percent) and led H1 2026 with 2.045 million units, the only Chinese automaker above 2 million that half-year. But it lost the domestic sales crown to BYD in 2024 after 18 years on top.
How badly do EU tariffs hurt SAIC Motor?: SAIC faces a 35.3 percent EU countervailing duty on BEVs (about 45.3 percent total tariff), the highest rate among Chinese automakers, in force since October 2024. Its BEV imports into the EU nearly halved from 2023 to 2025, prompting a planned MG assembly plant in Galicia, Spain, announced June 2026.

Timeline

2026-07-20IM Motors and Shangjie publicly deny dealer-network financial trouble rumors
2026-07-19SAIC Group issues six-month no-sell share pledge to support stock
2026-07-06SAIC reports H1 2026 sales of 2.045 million units, top among Chinese automakers
2026-06-18Refreshed Shangjie H5 launches with Huawei Qiankun ADS 4.1 and LiDAR
2026-06-02MG confirms plan to build EU assembly plant in Galicia, Spain
2026-05-29SAIC to cut India JV stake further, from 49% toward 39%, ceding control to JSW
2026-01-07SAIC reports record 2025 sales of 4.507 million units, NEV sales up 33%
2025-09-23Shangjie H5 launches, drawing over 160,000 pre-orders in first month
2025-04-16SAIC joins Huawei EV venture following 93% profit collapse in 2024
2024-10EU 35.3% countervailing duty on Chinese BEVs takes effect, highest for SAIC

Revision history

25 July 2026

First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.

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