Korean Media: CATL's Profits Are Approaching Toyota's!
On June 24, Korean media outlet Global Economy published an article stating that Chinese battery company CATL is reshaping the global automotive industry's profit structure.
CATL achieved a net profit of approximately $3 billion in the first quarter of this year— an extraordinary accomplishment for a single quarter, exceeding the combined net profits of China’s seven major automakers by about $500 million.
A company supplying batteries to automakers is now earning more profit than all its clients combined.
CATL still maintains nearly half of the market share in China’s electric vehicle battery market, firmly holding the top position in the industry.
Industry experts generally believe that even as market growth slows down, companies like CATL are expanding their market share—precisely reflecting their strong competitiveness.
Meanwhile, Toyota Motor, the world’s largest automaker, recorded an operating profit of around $3.8 billion during the same period, slightly higher than CATL’s. However, this figure represents a 49% decline compared to the same period last year. Analysts attribute this downturn primarily to the impact of U.S. tariffs and intensifying competition in the Chinese market.
Compared to Toyota’s net profit of $5.8 billion during the same period last year, the drop is significant.
Experts commented: “Although Toyota currently holds a slight edge in performance, the battery company that does not directly manufacture vehicles has achieved profit levels nearly on par with the world’s largest automobile manufacturer. This marks a symbolic shift in industrial value—from 'vehicle manufacturing' toward 'batteries and components.'”
Original source: toutiao.com/article/1868880844799172/
Disclaimer: The views expressed in this article are those of the author(s).