As financial reports for the first half of 2025 are released, the performance of listed auto parts companies has become a focus of market attention. Since the beginning of this year, the automotive industry has continued to transform and evolve, and market competition has intensified. While performance growth has been the mainstream for listed auto parts companies, each company has its own specific situation.
In the first half of 2025, the penetration rate of new energy vehicles in China reached 44.3%, with electrification and intelligent technologies becoming growth engines for many auto parts companies. The expansion of trade-in policies, the accelerated implementation of intelligent technologies, and the in-depth development of overseas markets have created new development opportunities for auto parts companies. However, due to multiple factors such as rising raw material costs and intensified market competition, the profit margins of some companies have been squeezed, and they are facing the pressure of transformation and upgrading.
Against this backdrop, auto parts companies have taken action. First, they are actively exploring new growth areas in emerging fields. Second, they are improving supply chain management and production efficiency to reduce costs and address the challenges brought by rising raw material costs. Furthermore, international development strategies have become a common choice for many auto parts companies. Overall, in the first half of this year, China’s auto parts industry has strived to find opportunities amidst transformation, demonstrating strong resilience and vitality.
Sector Leader
The Dual Game of Scale and Structure
In the first half of 2025, the top-ranked companies in the Shanghai and Shenzhen auto parts sectors showed an overall growth trend, leveraging their traditional business scale advantages while continuously tapping into new drivers.
In the first six months of this year, Weichai Power achieved revenue of 113.15 billion yuan, a year-on-year increase of 0.59%, while net profit attributable to parent company shareholders was 5.64 billion yuan, a year-on-year decrease of 4.4%, demonstrating the robust foundation of an industry leader. While performance remained stable, the company’s development was not without highlights, including significant progress in its high-end transformation, with sales of over 5,000 M-series large-cylinder engines, a year-on-year increase of 41%. The company’s new energy transition accelerated, with sales of new energy heavy-duty trucks exceeding 10,000 units, a year-on-year surge of 255%. Overseas business also fueled this growth, with its controlling subsidiary, the German KION Group, receiving new orders of €6.21 billion, a year-on-year increase of 22.2%. Its controlling subsidiary, the US-based PSI Power Systems, achieved strong growth, achieving record-breaking performance, with operating revenue of US$330 million, a year-on-year increase of 59%, and net profit increasing by 145%.
In the first half of 2025, Huayu Automotive achieved revenue of 84.676 billion yuan, a year-on-year increase of 9.55%, and net profit attributable to parent company shareholders of 2.883 billion yuan, a year-on-year increase of 0.72%. As a leading domestic comprehensive auto parts company, Huayu Automotive’s newly acquired business lifecycle orders have increased to 60% for its own brands, and 80% for new energy vehicle-related business. On August 27, Huayu Automotive announced that it plans to acquire a 49% stake in SAIC Qingtao from its controlling shareholder, SAIC Motor, for 206 million yuan. This equity acquisition marks Huayu Automotive’s first entry into the solid-state battery field, which will help complete its intelligent power platform product portfolio and achieve synergistic development of its solid-state battery business with other businesses such as electric drive and thermal management.
Top Group’s 2025 interim report shows that revenue increased but profit did not, and its accounts receivable are relatively large. In the first half of 2025, the company achieved revenue of 12.935 billion yuan, a year-on-year increase of 5.83%, and net profit attributable to parent company shareholders of 1.295 billion yuan, a year-on-year decrease of 11.08%. During the reporting period, Top Group had significant accounts receivable, accounting for 218.04% of its net profit attributable to the parent company in its latest annual report. Top Group’s products span eight business segments: automotive NVH (Vibration Damping) and shock absorption systems, interior and exterior systems, lightweight bodywork, intelligent cockpit components, thermal management systems, chassis systems, air suspension systems, and intelligent driving systems. The establishment of an electric drive division and its entry into the embodied intelligent robotics business are key strategic initiatives for the company, aiming to create a new growth trajectory.
Fuyao Glass achieved operating revenue of 21.447 billion yuan in the first half of 2025, a year-on-year increase of 16.94%. Net profit attributable to shareholders of the listed company was 4.805 billion yuan, a year-on-year increase of 37.33%. Automotive glass products are increasingly becoming more multifunctional, lightweight, and integrated, with high-value-added products such as panoramic sunroofs, head-up displays (HUDs), and integrated glass antennas rapidly appearing in vehicles. During the reporting period, the share of Fuyao Glass’s high-value-added products, such as intelligent panoramic skylight glass, dimmable glass, head-up display glass, ultra-insulated glass, lightweight ultra-thin glass, coated and heatable glass, and tempered laminated glass, continued to increase, further driving the company’s dual growth in revenue and profits.
Overall, the leading auto parts companies in the Shanghai and Shenzhen stock markets by market capitalization share certain common characteristics: they are all cultivating a secondary growth curve driven by electrification and intelligentization, aiming to achieve stronger profitability and a valuation premium. In the battle between scale and structure, their choices demonstrate strategic foresight.
Battery Motors
Benefiting from the increasing penetration of new energy vehicles
In the first half of 2025, the automotive electrification sector demonstrated significant acceleration in technological iteration and commercialization, which together constituted the core driving force for industry growth. Many listed battery companies achieved dual growth in revenue and profits.
CATL achieved revenue of 178.886 billion yuan in the first half of this year, a year-on-year increase of 7.27%, and net profit attributable to parent company shareholders of 30.485 billion yuan, a year-on-year increase of 33.33%. Since the beginning of this year, CATL has released new products in the passenger car sector, including the second-generation Shenxing supercharger battery, Xiaoyao dual-core battery, and sodium-based new battery.
During the same period, Guoxuan High-tech achieved revenue of 19.394 billion yuan, a year-on-year increase of 15.48%, and net profit attributable to parent company shareholders of 367 million yuan, a year-on-year increase of 35.22%. Zhongxinhang achieved revenue of 16.419 billion yuan, a year-on-year increase of 31.7%, and profit of approximately 753 million yuan, a year-on-year increase of 80.4%. Xinwangda achieved operating revenue of approximately 26.985 billion yuan, a year-on-year increase of 12.82%, and net profit attributable to parent company shareholders of approximately 856 million yuan, a year-on-year increase of 3.88%.
Solid-state batteries, as one of the new highlights in the automotive electrification sector, have attracted numerous companies to invest in and actively promote technological research and industrialization. Recently, the Ministry of Industry and Information Technology released the “Action Plan for Stabilizing Growth in the Electronic Information Manufacturing Industry 2025-2026,” proposing support for basic research in cutting-edge technologies such as all-solid-state batteries. Furthermore, several battery companies have recently announced the completion or imminent completion of all-solid-state battery pilot lines and have confirmed plans for mass production, leading to expected growth in demand across the industry chain. For example, Guoxuan High-Tech has completed its first all-solid-state battery pilot line, achieving a 90% yield rate for cells produced off the line. The company has commenced design work on a 2GWh mass production line and anticipates small-scale production and vehicle testing of all-solid-state batteries by 2027. In the field of quasi-solid-state batteries, Guoxuan High-Tech’s G Yuan quasi-solid-state battery boasts an energy density of 300Wh/kg and a range of 1,000 kilometers. Prototype vehicles equipped with this cell have accumulated over 10,000 kilometers of mileage, providing strong validation of its reliability in real-world applications. The company also revealed that samples have been delivered to over five customers, with over four entering the vehicle testing phase.
However, the power battery industry currently faces significant challenges, primarily driven by intensified market competition. In addition to intensifying competition in both domestic and international markets, an increasing number of automakers are building their own battery factories, reducing demand for external supply. Domestic power battery manufacturers, facing the dual competitive pressures of both peers and cross-industry entrants, must continuously achieve breakthroughs in improving product performance and reducing costs.
Overseas markets have become a common choice for domestic power battery companies seeking new growth opportunities. From January to July this year, my country’s power battery exports increased by 29.4% year-on-year, with exports from companies such as BYD, Honeycomb Energy, and Ruipu Lanjun exceeding the industry average. The global power battery industry is undergoing a restructuring, and Chinese companies’ overseas expansion is both an inevitable choice for scale expansion and a strategic opportunity for technological breakthroughs. However, the uncertainty of the overseas market’s policy environment remains the greatest risk factor for power battery companies’ global expansion. Furthermore, rising cost pressures cannot be ignored. Initial investment in overseas factories is substantial, and this asset-heavy model places higher demands on companies’ financial strength and operational capabilities.
Listed companies in the motor sector also performed impressively. Jingjin Electric announced that it achieved revenue of 1.022 billion yuan in the first half of 2025, a year-on-year increase of 76.75%, and net profit of 35.9653 million yuan, a year-on-year increase of 112.62%. It is reported that the main reason for Jingjin Electric’s strong performance is the significant growth in revenue from its core businesses of new energy vehicle electric drive systems and technology development and services. Specifically, in the passenger vehicle electric drive system sector, sales orders have increased significantly as customer demand has increased and projects have commenced production.
Intelligent Configuration
Market space continues to expand in multiple sectors.
Market research data shows that by the first half of 2025, the penetration rate of assisted driving features in Chinese vehicles will have risen from 20% at the end of 2024 to 32%. As the market rapidly develops, government regulation is also closely monitoring this. In March 2025, the Ministry of Industry and Information Technology and the State Administration for Market Regulation jointly issued the “Notice on Further Strengthening the Management of Intelligent Connected Vehicle Product Access, Recalls, and Online Software Upgrades.” This notice further standardizes the management of intelligent connected vehicles, effectively ensures vehicle safety, improves the safety level of intelligent connected vehicle products, and promotes high-quality development of the automotive industry.
In the first half of 2025, the pace of technological breakthroughs and commercialization of intelligent vehicles also accelerated, providing sustained momentum for the performance growth of listed companies. Desay SV focuses on full-stack integration in three key areas: smart cockpit, smart driving, and connected services. This has yielded significant business synergies: In the first half of this year, revenue reached 14.644 billion yuan, a year-on-year increase of 25.25%; net profit attributable to parent company shareholders reached 1.223 billion yuan, a year-on-year increase of 45.82%; and annualized sales of new project orders exceeded 18 billion yuan. Specifically, the company’s smart cockpit business achieved sales of 9.459 billion yuan, an 18.76% year-on-year increase; its combined assisted driving business generated revenue of 4.147 billion yuan, a year-on-year increase of 55.49%.
During the same period, Huayang Group achieved revenue of 5.311 billion yuan, a year-on-year increase of 26.65%, of which its automotive electronics business generated revenue of 3.788 billion yuan, a year-on-year increase of 23.37%. R&D investment reached 440 million yuan, a year-on-year increase of 17.92%, accounting for 8.29% of operating income. Huayang Group’s performance growth has benefited from a dual dividend of product upgrades: leveraging the Huayang Open Platform (AAOP), it has enabled mainstream large-scale vehicle model solutions to be integrated into vehicles, building an integrated “chip + OS + AI” platform and promoting cockpit domain controller solutions for multiple platforms, including Qualcomm, CoreDrive, Renesas, and MediaTek. Furthermore, by integrating its technological advantages in in-vehicle screen displays and HUD optical displays, it pioneered the launch of VPD products in China.
In the first six months of this year, Horizon Robotics achieved revenue of 1.567 billion yuan, a year-on-year increase of 67.6%, primarily driven by significant growth in its product and solutions business. The company reportedly shipped approximately 980,000 units of its Journey 6 series chips, which support highway and urban NOA (Non-Available Access Assist) systems. This represented nearly 50% of total shipments in the first half of the year and contributed over 80% of related business revenue. However, high R&D investment led to an increase in adjusted operating losses to 1.11 billion yuan, reflecting a common problem faced by companies in the intelligent driving industry chain during the technological breakthrough phase.
The rapid evolution of automotive intelligence has led to a growing proportion of automotive electronics in vehicle costs. With the market further expanding, the automotive electronics industry is expected to maintain a high growth rate for some time to come. Intelligence and connectivity, as core drivers of the current automotive industry, are driving an even more urgent need for technological iteration and ecosystem integration. The market continues to expand, presenting vast opportunities for related companies. With the rapid increase in the penetration of intelligent vehicles, the industry’s requirements for the standardization and safety of technological applications will inevitably increase, placing stricter demands on the performance, reliability, and safety mechanisms of key products such as intelligent assisted driving systems. Companies in the automotive intelligent industry chain must prioritize technological research and development and systematic optimization to comprehensively enhance the reliability of intelligent products and fully prepare for the impending widespread adoption of intelligent technologies.
Traditional Components
Under Transformation Pressure, Innovation is More Essential
Traditional component companies faced even greater transformation pressure in the first half of this year, but their technological accumulation in core areas and global presence demonstrated strong resilience.
According to statistics from the China Internal Combustion Engine Industry Association, domestic sales of multi-cylinder diesel engines reached 2.1541 million units in the first half of 2025, a year-on-year increase of 3.84%. Of these, 1.0227 million were used in commercial vehicles, a year-on-year increase of 2.44%, and 446,900 were used in construction machinery, a year-on-year increase of 2.31%.
In the first six months of this year, Quanchai Power achieved revenue of 2.391 billion yuan, a year-on-year increase of 9.22%. Net profit attributable to parent company shareholders was 53.2657 million yuan, a year-on-year increase of 8.55%. Net profit excluding non-recurring items was 37.1021 million yuan, a year-on-year increase of 9.01%. Actual sales of multi-cylinder engines reached 180,600 units, a year-on-year increase of 10.05%. Quanchai stated that it will continue to deepen its core engine business, continuously accelerate technological upgrades, enrich its product mix, and accelerate the development and promotion of hybrid, range-extended, hydrogen fuel cell, gas engines, and electric drive axles.
During the same period, Dong’an Power achieved revenue of 2.479 billion yuan, a year-on-year increase of 25.72%, and net profit attributable to parent company shareholders of 3.9212 million yuan, a year-on-year increase of 157.75%, turning a profit compared to the same period last year. This was primarily due to increased orders for automatic transmissions, which resulted in significant increases in both operating income and gross profit compared to the same period last year.
Faced with fierce market competition, engine companies have increased their investment in new energy businesses and market development, adopting differentiated competitive strategies. In the first half of this year, Dong’an Power promoted product and market transformation and actively expanded into the low-altitude economy market. Regarding products, the rotary engine platform focused on the low-altitude economy has been officially approved and partnered with AVL. The new 2.0L turbocharged direct injection, high-thermal-efficiency engine jointly developed with Changan Automobile has been officially approved and successfully ignited. The company secured 60 new market project contracts, including 14 in the new energy market.
In the first half of this year, Linglong Tire achieved revenue of 11.812 billion yuan, a year-on-year increase of 13.8%, and net profit attributable to parent company shareholders of 854 million yuan, a year-on-year decrease of 7.66%. During the same period, Sailun Tire achieved revenue of 17.587 billion yuan, a year-on-year increase of 16.05%, and net profit attributable to parent company shareholders of 1.831 billion yuan. Tire sales reached 39.1449 million units, a year-on-year increase of 13.32%. Triangle Tire achieved revenue of 4.78 billion yuan in the first six months of this year, a year-on-year decrease of 4.5%, and net profit attributable to parent company shareholders of 396 million yuan, a year-on-year decrease of 35.3%.
In the first half of 2025, tire production and sales overall showed a steady upward trend, with the export market performing particularly well. Exports of both full-steel and semi-steel tires saw significant increases, providing significant support for domestic tire production and sales. However, the natural rubber futures market experienced significant volatility, with prices fluctuating at a high level in the first quarter and falling sharply in the second. Overall, the domestic tire industry is experiencing a combination of scale expansion and profit pressure. Leading companies are primarily maintaining growth through strategies such as overseas plant construction and the development of green products. However, structural overcapacity and homogeneous low-end products remain prominent issues in the industry, further impacting profit margins through price competition.
